Workers’ Compensation Insurance
Workers’ Compensation Insurance is a state-mandated insurance program which covers lost wages, medical treatment and death benefits resulting from an employee’s work related injuries, illness or loss of life. It also provides coverage for services necessary to assist an employee with their recovery and ultimately get them back to work. Considering that the cost of Workers’ Compensation Insurance is paid entirely by the employer – and that no amount can be charged back to an employee – it is important for your company to find coverage that is both affordable and is in compliance with state regulations.
If you own a business in New York and have employees, Schaefer Enterprises can help you obtain the proper Workers’ Compensation Insurance coverage to protect your business.
Understanding What is Covered in a Workers’ Compensation Policy
With the purchase of Workers’ Compensation insurance, an insurer is assuming the employer’s statutory obligation to pay an injured employee’s medical, indemnity, and death benefits under the law. Specifically, when an employer purchases Workers’ Compensation Insurance, he or she is buying the following protection:
- Medical services needed to treat a job injury or an illness contracted as a direct result of a job;
- Temporary payments to replace the employees’ lost wages as a result of being disabled;
- Permanent payments to the employee to compensate him or her for the permanent effects of an injury;
- A death benefit for the employee’s survivors in the event of a fatal injury;
- Legal representation for the employer by the insurance carrier;
- Protection for an employer against most lawsuits for on-the job injuries/illnesses.
How much does Workers’ Compensation Insurance Cost?
Rates are based strictly on a business’s payrolls and claims experience over the prior four years (frequency and severity).
The Workers’ Compensation Insurance Board
The Workers’ Compensation Board has the legal authority to ensure that employers provide such coverage. In addition, they levy hefty fines on those businesses that don’t comply. In New York state the Workers’ Compensation fine is $2,000 for every 10 days there is no coverage in force.
While the Board doesn’t provide any insurance, nor pay claims, set rates, or oversee the carriers providing coverage, they are available to answer questions for and provide assistance to employers when they question their Workers’ Compensation classification(s). Schaefer Enterprises can help you navigate these Workers’ Compensation Insurance issues.
When a classification is challenged by an employer, usually it is the Workers’ Compensation Board who intervenes and makes the final decision regarding the governing class code appropriate for the operations of the business in question.
Let Schaefer Enterprises show you how to protect your business and your employees with Workers’ Compensation Insurance that costs less than you expect. Call us at 877.237.2481.
