Staten Island, NY 718-370-3131 Hauppauge, NY 631-352-5700

718-370-3131

631-352-5700

What Are the Penalties for Not Providing Workers’ Comp?

Workers’ compensation is a type of plan that covers wage replacement and medical benefits due to sickness or injury while performing work related duties. Most businesses require workers’ comp, but especially in industries where there is a high risk of getting sick or injured while on the job. If a business is caught functioning without workers’ comp coverage, they could face severe penalties.

What happens if you don’t carry workers’ comp?

If you think skipping workers’ comp is a smart way to save money for your business, think again. Workers’ compensation insurance is a necessary expense, even if your company has no history of any serious work-related injuries. This is because business owners who do not comply with their state policies regarding workers’ comp are subject to criminal or civil penalties such as fines or imprisonment.

If an employee becomes injured on the job for a company which does not have the necessary insurance, the company is responsible for paying all bills relating to the injury. The employee then also has the right to file a personal injury claim against the organization. The costs associated with handling a claim like this are enough to close a business down permanently.

New York Workers Compensation

In New York State, failure to carry workers’ comp coverage is a criminal offense punishable by a fine of $2,000 per 10-day period of noncompliance. This is in addition to the medical and compensation costs awarded to the employee, which could be in the hundreds of thousands of dollars. Employers must provide coverage for all employees, both full and part-time to avoid lawsuits, fines, or a potential business closure.
Protect Your Business and Employees

Most States require workers’ comp in order to protect employees and cover medical expenses. Do you know how much insurance you need? You should never pay for too much workers compensation insurance, but you always need to have just enough to keep your workers covered. Call TCE Insurance today and talk to one of our professionals about the right amount of insurance for your company.


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Staten Island Location

201 Edward Curry Ave,
Staten Island, New York 10314
Tel:  718-370-3131
Fax: 718-370-3110

Email: info@tceins.com


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Long Island Location

490 Wheeler Road, Ste 251,
Hauppauge, New York 11788
Tel: 631-336-2572
Fax: 631-761-6486
Email: info@tceins.com