Tag Archives: New York

New York holds over 30 million people and over one third of that within NYC and its surrounding suburbs. insurance is necessary for all the small businesses within the city and its customers.

Workers Compensation Insurance

Understanding The New York State Insurance Fund Reservation of Rights Process

Executing the NY State Insurance Fund Reservation of Rights protocol is critical if you do not want to be surcharged for leaving the NYSIF.

As you may be aware if you want to leave The New York State Insurance Fund for greener pastures or a better offer for workers compensation insurance from the private market place you must reserve your rights within 30 days of the workers compensation insurance policy expiration date. Failure to do so will result in a penalty of at least 10% of the annual workers compensation insurance premium. Naturally, this little poison pill gets many a NY business owner sick, usually after the fact as many insurance brokers are no as conversant as they should be in the rule.

Thus in the spirit of good faith here are two important resources to help you execute.

Click Here

To download a sample letter you need to draft on your letterhead to let the carrier know your intentions so you can reserve your right to leave the NYSIF without penalty. This doesn’t mean you will, you just simply want the option just in case.

Click Here

To figure out who your NYSIF Underwriter is. This is the person the letter should be addressed to AND you should send to both electronically AND by Certified Mail just in case. It’s worth the $4 in case you do exercise your right to leave . If they come back with the penalty you can prove that you reserved your right and provide back up.

If you decide to remain with the NYSIF you must follow up with the underwriter and let them know your intent in writing or they will assume you left and cancel the policy. It’s tricky as reserving your rights SHOULD NOT mean auto cancel the policy, however, that is how the NYSIF interrupts the reservation of rights. Don’t let that trip you up. We suggest that you work with a Risk Advisor to guide you with this process . If they are a Metropolitan Risk Advisor they will do this gratis in appreciation for how time challenged you are. If you have any more questions about NY State Insurance Fund Reservation of Rights contact a Risk Advisor for more details. Simply complete the form below or give us a shout at (914) 357-8444. We are here for you.

 

Construction Practice Group Content, Workers Compensation Insurance

NY Construction Industry Fair Play Act

New York State developed the NY State Construction Industry Fair Play Act to reduce levels of employee misclassification and fraud; predominantly in the construction industry. NY State Dept of Labor discovered employers in both the transportation industry and construction were intentionally reporting employees as “independent contractors” to state and federal authorities or their workers’ compensation carriers in huge names. Further, there was a huge increase in employers who simply failed to report a high percentage of their employees.

 

Unfortunately, any business who “willfully” fails to properly classify an individual as an employee is subject to civil and criminal penalties up to $2,500 for the first violation per misclassified employee, up to $5,000 for each subsequent violation per misclassified employee within a 5 year period. In addition to civil penalties, the criminal penalties imposed on the business owner who willfully misclassifies will be a misdemeanor. Upon conviction, punishment for a first offense may $25,000 or imprisonment for up to 30 days. For subsequent offenses, a fine may reach up to $50,000 or imprisonment for up to 60 days.

 

Folks, there is a lot at stake here. Gone are the days where you can skirt the rules. Both the authorities and the “employees” have too much information. You work so hard to build a business. Short cuts only lead to dead ends.

 

If you really want to understand the nuance in the NY State Construction Industry Fair Play Act we suggest you download our E-Book by CLICKING HERE.

 

Still have questions? Still want more info? Contact a risk advisor today at 914-357-8444.

Construction Practice Group Content, Workers Compensation Insurance, Workers Compensation Premium Audits

New York Construction Payroll Limitation

Effective for workers compensation policies that begin on or after July 1st, 2014 for those companies that perform construction work in N.Y. the New York Construction Payroll Limitation cap will be $1,212.98.

For those who need a re-fresher; beginning in 1999 the NY Legislator passed a law that essentially caps the amount of construction payroll for certain classes of construction labor. If you are unsure if any or all of your employees qualify for the limitation, please CLICK HERE for a listing.

The reason the limitation was enacted was to give Union and Prevailing Wage Contractors the ability to be more competitive against open shop firms. They complained, rightly so that because they pay a higher wage they are being unfairly penalized as the risk profile doesn’t change. The amount they pay on workers compensation premium is considerably higher.

Thus, if your employees make more that $1,212.98 in a given week; for workers compensation premium audit / calculation purposes the maximum payroll used to calculate the workers compensation premium should be $1,212.98.

 

If you have any questions about the New York Construction Payroll Limitation, please contact a Risk Advisor for clarification.

Workers Compensation Insurance

Recent Ruling Gives NY Workers Comp Trust Employers Hope

On May 2nd the N.Y. Supreme Court issued an important statement relating to the assessments issued to many New York based businesses who are on bended knee trying to pay the significant charges being accrued from their participation in New York’s Self Insured Trusts. In a significant ruling, “Riccelli Enterprises Inc., et al., versus the State Workers Compensation Board,” an appellate court upheld an injunction against state efforts to assess 826 transportation employers that once belonged to a failed self insurance trust.

“This is a significant development in the NY Workers Comp Board’s collection suits,” said Joseph Makowski, a Buffalo attorney who represents 225 employers from eight trusts.” Some other trusts are going to try for injunctive relief.”  Linda Clark, an Albany attorney representing employer clients in ten trusts, said the Riccelli decision will only have persuasive authority on other courts, not binding authority.” That said, Clark revealed the ruling may provide a “path“ for employers to resist the Board’s aggressive collection efforts.

“A lot felt pressured to enter agreements that were beyond their means,” said Clark, a litigator with the firm Hiscock & Barclay LLP. 

A NY Workers Compensation Board spokesperson said the Board has no plans to shift it’s collections procedures in response to the Riccelli ruling.

In the past several years the board has assumed responsibility for most of the 60 some self insurance trusts that sprang up in response to legislation during the administration of Gov. George Pataki, later failing. All the self insurance trusts combined have deficits north of $900 million. The state recently issued $390 million in bonds to pay an insurer to administer the failed trust’s remaining claims and deficits. The NY Workers Compensation Board is looking to employers that were once members of those trusts to foot the final bill. In doing so the board is compelling employers to pay the board calculated assessments or face lawsuits in court.

The trial judge in the Riccelli case, Supreme Court Judge John C. Cherundolo wrote the board’s approach was too strict in a case involving the Transportation Industry Workers’ Compensation Trust. In that 2012 opinion concluded the Workers Compensation Board over stepped their bounds by imparting a “two part scheme of assessment.” First the board argues that it must impose an interim assessment within 120 days. Secondly at an undefined point in the future the board must levy the actual assessment for the entire liability of the group self insurer after a post deficit reconstruction.

Continue reading Recent Ruling Gives NY Workers Comp Trust Employers Hope →

Construction Practice Group Content, Food & Beverage Practice Group Content, Human Services Practice Group Content, Transportation Practice Group Content, Workers Compensation Insurance

Who Has the Best Workers Compensation Rates in New York!?

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Click here to find out!

Simply fill out the brief form and one of our Comp Care representatives will get you a list of the best carriers for your class or classes of business.

Continue reading Who Has the Best Workers Compensation Rates in New York!? →

Other

Why NY DFS Denial For NY Workers Compensation Rate Increase Will Cost NY Policyholders More

Several months back we were one of the first to publish the announcement that NY workers compensation rates were increasing by an average of 11.5% effective October 1st, 2012. In a memo announced on July 23rd the Department of Financial Services (DFS) revealed that they have DISAPPROVED the NY Workers Compensation Insurance Rating Board’s rate increase . Why then do we believe this will ultimately cost NY workers compensation insurance policy holder’s more money? The reason is quite simple; supply and demand.

Let me splain Lucy, (dating myself). It comes down to two words, rate adequacy. At present the loss ratios    (the ratio between premiums taken in to loss paid out by insurance companies) is in excess of 112% which means that for every dollar in premium a NY workers compensation carrier receives they are paying $1.12 in losses. If workers compensation insurance carriers continue to lose money AND they can’t increase rates to off set losses they simply stop writing that particular line of insurance. The end result is that the end user business owner has less options or less workers comp insurance carriers to compete for their business. Thus the classic supply and demand squeeze.  As of this writing Chartis Insurance has already cancelled or non renewed almost 40% of their workers compensation policies as they are losing money on the line. Hartford too is decreasing market share.

There is a large contingent of businesses that refuse to place their business with the State Insurance Fund which is FALSELY considered the cheapest; the reality is it’s somewhere in the middle. Further they feel the State Insurance offers poor service, painful workers compensation audits, and porous claims handling.

It’s our belief that the free market should take care of itself. The companies with the poor results will fall while the stronger ones will continue to write business at more competitive rates gaining more market share. If the workers compensation carriers feel the chasm between rates and results is too wide you will only have one very expensive option available, the State Insurance Fund which has proven a suspect value for those businesses trying to control their workers compensation costs.

In the short term NY business owners dodged a bullet, as rates will remain flat for the majority of businesses. Longer term as in 6 to 12 months, batten down the hatches as Issac isn’t the only storm out there.

Other

New York Workers’ Compensation Insurance

Small business owners with just a few employees naturally hope they’ll never have to deal with a workplace injury, yet in some cases their risk may be higher, particularly if they have few safety procedures in place in their small enterprise. Like many other types of insurance, the cost of New York workers’ compensation can increase when injury claims begin to roll in, so it really can pay to be diligent with workplace safety. Here are some of the areas that can be easily neglected by small business owners.
Lifting injuries
In a small business, people often work above and beyond what might be required of an employee in a larger enterprise. Small business employees often need to be independent and highly competent as there isn’t always help to call on. However, that nature can lead to individuals forgetting to ask for assistance even when it is available and lifting heavy items alone. Lifting injuries are a very common workplace injury. Encourage your employees to ask for assistance and ensure they know how to apply safe lifting techniques.
Repetitive strain injuries
Repetitive activities and poor posture can lead to quite a range of issues with the spine, and also have the capacity to result in pinched nerves and strained tendons. By the time the worker begins to feel the pain, the problem can be well advanced necessitating medical treatment and a period of rest. Could these issues arise in your workplace?
Minimizing the risk of injury to your workers is as important as having your New York workers’ compensation insurance in place.  Call us today if you need a quote for this or any other business insurance.

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Other

Is Your Hired House Helper Covered By New York Workers Compensation Insurance?

It’s good to have a local insurance agent when you have questions regarding liability insurance. New York workers compensation insurance, for instance, may or may not be needed depending on your specific situation. There may also be the option of much less expensive riders which you could add to your policy to fit the bill.

Those who have a business with full-time employees based out of home would most likely need a separate New York workers compensation insurance policy. Since this probably relates to only a small percentage of homeowners, this type of policy will not be needed in many domestic employees and homeworker situations.

One thing to consider with the help in an around the house is the number of hours worked. When the total number of hours worked in or around the home by a worker is less than 40 hours, you may be fine just adding a rider to your homeowner’s policy to cover him / her. However, you will need to be careful to make sure you have all your bases covered since there may be times you will want to make sure your hired helpers have their own insurance coverage. Your local agent is the one to guide you through the available options and concerns regarding New York workers compensation insurance and coverage for home help.

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General Liability Insurance

In New York The Roads Can Be A Liability

In a state with as many practicing lawyers as New York, does anyone really need to be told about the importance of liability insurance in the Empire State? Discussions about liability insurance in New York may have more to do with how much you need, rather than the minimum amount available.
Does your business operate vehicles in New York? Many of the roads in New York State were designed long before the modern age of high motor vehicle volume and the need to share the road. It is not uncommon to encounter little or no bike lanes or jogger paths. As you would expect, there are higher incidents of pedestrians being struck by cars when there is a shortage of bike lanes and wide roads. The abundance of trees in New York State also shade and darken some roads, making it harder to spot a person.

Having numerous narrow, dark, winding roads may be enough challenge for drivers. When you also consider wet or icy conditions, and distracted drivers who may be texting, the challenge becomes even more daunting. Distraction for just a second or two combined with an unwary pedestrian or cyclist can be a disastrous combination. Without the protection of a vehicle exterior, pedestrian and cyclist injuries can be serious and permanent.

When it comes to liability insurance New York, you have the perfect mixture of difficult conditions to create an elevated need for extra coverage. Speak to one of our agents about finding a suitable liability policy for your financial protection.

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