Getting Started With Workers’ Compensation

In states such as New York, it is mandatory for a company with employees to have workers’ compensation insurance. States that mandate workers’ compensation also have minimum limits that every company must meet to avoid fines. We work with clients on workers’ compensation needs all of the time, and it always helps when our clients have a general understanding of workers’ compensation before we start our conversations.

Who Is It For?

Workers’ compensation insurance is required for every employee on a company’s payroll. The number of employees a company has will dictate how much insurance they need to buy, but we always try to encourage clients to buy the amount of insurance they realistically need and not just the minimum. Company owners and sole proprietors are not covered by workers’ compensation insurance.

What Is It For?

In general, workers’ compensation insurance offers coverage for medical costs and loss of income for injuries received while on the job. The biggest difference between a compensation event and a non-compensation event is that everything must be done through the insurer’s network. If the worker’s doctor will take on the compensation case, then the worker can see their own doctor. But in most cases, all of the doctors and specialists the worker will see are from the insurer’s network.

How Are Premiums Calculated?

Workers’ compensation premiums are calculated using a variety of factors including the type of industry the company is in, the type of employee being covered, and the number of employees a company has. For example, it will more than likely cost more to insure a construction field supervisor than it would an office worker because of the supervisor’s status and the potentially dangerous nature of their job.

We find that most clients get confused when it comes to calculating workers’ compensation premiums. Every company has its own formula for determining how much workers’ compensation will cost, and we do our best to make sure that all of our clients only pay for the insurance they need. At the same time, we want to be certain that the amount of workers’ compensation insurance you buy will cover your employees and prevent your company from experiencing and financial harm.

Why Is It Important?

Aside from being a legal requirement for having employees in New York State, good workers’ compensation insurance is a way to give your employees peace of mind. When your employees know they are covered by a quality program, then it makes them feel better about their job and the company.

Workers’ compensation insurance is complex, but necessary. When we discuss this form of insurance with our clients, we always recommend that they set aside the better portion of a day to discuss all of the necessary details. Your company will buy a lot of insurance to protect its operations, but few are as important as workers’ compensation.