Workers’ Compensation Insurance:

What a Business Owner Needs to Know

Workers’ Compensation treats numerous patients with work-related injuries, but on occasion, a patient’s employer never purchased Workers’ Compensation insurance. As a result, the patient and the employer face challenges in covering medical costs. This article will explain Workers’ Compensation insurance for employers.

We are not an insurance agency or law firm. Instead, we are medical providers who treat orthopedic injuries. Therefore, contact your insurance company, agency, or attorney before making definitive decisions. Therefore, contact your insurance company, agency, or attorney before making final decisions. However, contact us if your employee becomes inflicted with orthopedic injuries.

New York state mandates Workers’ Compensation insurance to cover work-related accidents, injuries, and illnesses. In addition, Workers’ Compensation provides medical treatment, wage replacement, and protection from legal action for an injured patient.

In addition to Workers’ Compensation, New York state also mandates disability benefits insurance to protect employees with work-related accidents, injuries, and illnesses. However, disability does not cover medical benefits.

Who needs coverage?

Companies with employees need Workers’ Compensation coverage. An employee is a person or compensated person who provides a service to a business. However, a compensated person has limited exceptions.

Some businesses may elect not to have compensation insurance, such as a sole proprietor without employees, partners without employees within a partnership, owners who hold all the business shares, or compensated persons working for an LLC. These employers may argue that Workers’ Compensation insurance is not required because they do not have paid employees. However, employers should consult an attorney when deciding not to purchase Workers’ Compensation insurance.

What determines the cost of Workers’ Compensation insurance?

Classification codes determine the cost of Workers’ Compensation insurance. In addition, these codes assign values to types of work based on the level of hazardousness.

In addition, how you operate your business impacts the cost of Workers’ Compensation insurance. For example, safety measures compared to similar companies within your industry. As a result, you should inquire about other businesses and compare them to your practices.

It is crucial to building an awareness of independent contractors in your area. Unfortunately, some employers believe they can hire an independent contractor, pay them 1099, and withhold paying for Workers’ Compensation insurance.

In addition, employees enjoy independent contractor status because of absent payroll withholdings and larger paychecks. However, employees and employers may believe independent contractors are beneficial until a worker becomes injured or ill.

Administrative law judges use several criteria to determine if an employee is a valid independent contractor, such as whose equipment they use and whether they have their own business. Employers become the general subcontractor when using subcontractors. Then, the employer must receive a certificate of insurance and will receive a notification if the insurance lapses.

You do not want to become uninsured. Instead, contact an attorney and accountant to discuss the intricacies of Workers’ Compensation insurance.

Employers may purchase Workers’ Compensation insurance with a monthly and down payment. You do not want to experience a situation with a subcontractor who made a down payment on insurance and lapsed coverage afterward.

New York state mandates Workers’ Compensation for disabilities and imposes severe monetary penalties. Therefore, verify that application of the correct code with the compensation insurance rating board. If an employee files a claim, you should follow up with the carrier and the employee.

The Department of Labor website provides information about the Workplace Safety Prevention Incentive Program, and will help mitigate safety risks.

In addition, inform employees about paid family leave and provide wage information to the insurance carrier.

According to the New York state Workers’ Compensation law, an employer may not discriminate against an employee for filing a claim. In addition, an employer can only terminate employees for valid reasons, such as misconduct, insubordination, and refusal to complete work.

For example, possibly an employee is out of work for an extended period, and the employer wishes to replace the employee. However, the employer must not discriminate against the employee for filing a claim but can replace the employee. Finally, immigration status does not impact Workers’ Compensation claims.

Employers must notify their insurance carrier when an employee tests positive for COVID-19 and work-related. COVID-19 Quarantine Leave provides employees job protection and wage compensation during mandatory or precautionary orders of quarantine or isolation of themselves or minor dependent children.

Employees may receive benefits under COVID-19 quarantine leave, paid sick leave, paid family leaves, or disability.


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Dr. Nakul Karkare

I am fellowship trained in joint replacement surgery, metabolic bone disorders, sports medicine and trauma. I specialize in total hip and knee replacements, and I have personally written most of the content on this page.

You can see my full CV at my profile page.