Why Should You Purchase Workers’ Compensation Insurance?

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Robert Golan

For employers on Long Island and throughout the state of New York, Workers’ Compensation insurance plans offer protection for most of the expenses you may incur when employees are injured on the job.

These expenses include:

  • Medical care injury or illness as long as it is directly related to performance of duties on the job
  • Temporary or permanent disability payments to the employee if the injury or illness prevents them from working
  • Death benefits for the employee’s family if the injury or illness leads to the death of the employee

Many plans also offer legal representation for the employer should litigation or arbitration arise as a result of the employee’s work-related injury or illness, as well as protections from lawsuits against employees as a result of injuries or illnesses incurred by their employees on the job. To find out more about these types of plans, you can contact Robert Golan’s Long Island Workers’ Compensation law firm for more information.

What Do You Need to Buy Workers Compensation Insurance?

There are over 200 companies currently writing Workers’ Compensation policies in the state of New York. Other options include becoming self-insured and certified by the board of the New York State Insurance Department (for larger employers who are able to demonstrate the financial ability to provide for the requirements of the worker’s compensation insurance regulations, or buying directly from the State Insurance Fund. Another option is to become a member of a type of co-op referred to as a Group Self-Insurer as authorized by the insurance Board.

You will need the firms FEIN (Federal employer Tax Identification Number) to apply for the insurance. If your legal entity status has changed since your business was founded, you will need to update your information with the IRS as it is possible due to the change that your FEIN has changed.

After you have your correct number you will typically purchase your plan through an authorized agent or insurance broker. Check with the insurance board or online for a list of agents or brokers and make sure to shop around for one that fits your needs as often policy writers specialize in particular business or industrial markets. You may also contact our Long Island Workers’ Compensation law firm for guidance.

Another option is to buy through the State Insurance Fund a nonprofit standalone state agency that since 1914 has been providing a guaranteed source for worker’s compensation insurance to businesses in the state of New York. The Fund strives to provide the best coverage possible for employers at the lowest possible costs.

No matter how you buy your coverage, or from where, it is imperative that you have such plans to protect not only yourself but your employees as well. In addition to being a sound and responsible business practice, it is also the law to carry such coverage for just about all employers in the state.

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