When it comes to employee safety, companies based in the state of New York are required to follow certain guidelines. One of the main tenets is providing workers' compensation coverage for all of their employees. As an expert in business insurance, Consolidated Agency in Rochester, NY, continues to educate firms about compliance regarding coverage for staffers injured while on the job. The insurance agency shares a helpful guide on what employers need to know about workers' compensation rules.

Workers' Compensation in New York

What Is Required?

New York law requires businesses to have insurance to pay for claims involving employees who sustain injuries while working. This can include accidents that happen while working on job sites, driving company-issued vehicles, and engaging in work-related situations. Companies must meet one of three coverage conditions: securing and maintaining workers' compensation, obtaining a self-insurance policy, or showing proof that they are exempt from having coverage.

Are For-Profits Required to Have Insurance?

Under specific conditions, certain for-profit firms may be exempt from providing workers' compensation coverage. If the business is a partnership as defined by New York law, an exemption is possible if there are no subcontractors, unpaid volunteers, part-time staff, or leased employees. Essentially, the partnership, which can not be a corporation, is prohibited from having any employees, which also includes family members.

Another condition that may exempt for-profits from the required workers' compensation mandate is if it only has one owner. Like the partnership exemption previously mentioned, the business cannot have any employees, unpaid volunteers, subcontractors or family members as employees.

The state will also consider exemption requests from corporations with one or two owners. The owners must own all of the company's stock and offices. In the case of a two-person-owned corporation, each is required under state law to possess at least one share of stock.

What Are the Proof of Coverage Rules?

New York State's Workers Compensation Law requires companies to post visible proof. Form C-105 is obtained through the company's business insurance carrier.

The form is required to be posted in an easily seen space within the company's physical place of business. Companies that are required to provide workers' compensation but do not post the Form C-105 could face a fine of up to $250 for each violation. The posted form must include the name of the business insurance carrier as well its address, phone number, and the employer's policy number. 

Let the team of business insurance specialists at Consolidated Agency ensure your company is compliant with New York’s workers' compensation regulations. As an independent agency, the firm can shop around for the most affordable rates from some of the nation's leading carriers. To learn more about coverage options, call (585) 467-4110. Visit the website for information about other insurance plans.