Are you a business owner in New York with employees?
If so, it’s time to consider the benefits of workers’ compensation insurance. Workers’ compensation is an important safety net for employers and employees because it provides potentially lifesaving financial support following injury or occupational illness.
In almost all states, employer protections stipulate that employers must carry such insurance policies if they have any employees. From understanding your obligations as an employer to comprehending the specifics of different policies available on the market—read through this blog post to find out why you should invest in New York workers’ comp insurance today.
What is Workers’ Compensation?
Workers’ compensation, also known as workman’s compensation or workers’ comp, is a type of insurance that provides wage replacement and medical benefits to employees injured during their work. Providing financial assistance during times of injury or illness can help alleviate some of the financial stress that comes with missing time from work due to an injury. It typically covers lost wages, medical costs, rehabilitation costs, and death benefits for an employee’s dependents.
Why is Workers’ Compensation Important?
New York workers’ comp insurance protects employers and employees from financial hardship if workplace accidents occur. For employers, it helps to protect against expensive lawsuits resulting from workplace injuries while also providing peace of mind knowing they are not personally liable should something go wrong.
This can also help preserve company goodwill under challenging situations. Meanwhile, workers receive medical coverage and financial assistance when they cannot provide for themselves or their families due to injury or illness incurred while on the job. Workers’ compensation insurance is a crucial safety net to ensure workforce stability should something unfortunate occur at work.
Who Needs Workers’ Compensation Insurance?
In New York, employers are required by law to carry workers’ compensation insurance for their employees (as well as uninsured subcontractors). That said, there are some exemptions for companies with few employees from having to provide coverage, so employers should check with their state labor office to find out what applies to them. In addition, businesses typically need workers’ compensation insurance if they have full-time or part-time employees working for them (including family members).
However, insurers may vary on what constitutes an employee to provide coverage. In addition, self-employed individuals should consider purchasing their coverage if they are engaged in professions where accidents are more likely to occur, such as construction or transportation services. Finally, businesses must ensure that the policy covers all new hires before allowing them to begin any physical activity required by the job.
How Does Workers’ Compensation Work?
When it comes time to file a claim under a New York workers’ comp insurance policy, specific steps must be taken to receive benefits: First, the injured party must fill out a claim form detailing what happened along with copies of doctor’s reports and hospital bills. Second, the employer must report this information to its insurer, who will review the request. Thirdly, the employer will submit this paperwork directly to its insurer, who will determine whether the claim is valid and begin processing payments.
Wrapping Up: Workers’ Compensation Is Essential for Business Owners
Now that you understand how workers’ compensation works and who needs it, you can start looking into whether your business requires coverage. If you’re still unsure whether or not your business needs coverage, contact an insurance agent for more information. They’ll be able to help guide you through the process of getting covered and answer any questions you may have.
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