Workers Compensation

You, as the employer, have a legal responsibility to your employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.

To protect yourself from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they're hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.

Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitiation services. It also provides death benefits to surviving spouses and dependents.

Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.

Workers compensation insurance must be bought as a separate policy. Although in-home business and businessowners policies (BOPs) are sold as package policies, they don't include coverage for workers' injuries.

New York State

Employers in New York State must carry workers compensation to provide medical and income benefits to employees injured while on the job. Sole propreitors in New York State are not required to carry this coverage as long as there are no employees. Members of an LLC and partners are automatically excluded from coverage but can opt in. Corporations with one or two executive officers are included in the coverage, but can opt out if they so desire. Corporations with more than two executive officers must carry the coverage on the officers and cannot exclude themselves.

It is important to retain certificates of insurance from your consultants and vendors to ensure they are carrying workers compensation for their employees.

For more information on Workers Compensation please contact us.