Do You Need Workers' Compensation Coverage?

Executive Insurance & Financial Services - 2011-05-20
 Do You Need Workers' Compensation Coverage?
If you have one or more employees working in NY State you are required to obtain NYS Workers’ Compensation insurance coverage.   The Workers’ Compensation Insurance Policy must be effective no later than the first day you have employees.
Understanding whether your business needs Workers’ Compensation coverage can be difficult.   But it is important to make sure you have the proper coverage.   The agents at E.I.F.S. are experts in Workers’ Compensation and can make sure you have the coverage you need.
Hereis some more information to help get you started:
But it is important to talk to someone to be sure your business is correctly covered.
Family Businesses: Family member who work for the business, including spouses, are considered employees if they work 40 hours a week or live on the premises. If it’s a home business you must have a separate Workers’ Compensation policy.
General Contractors: General Contractors should carry a Workers’ Compensation insurance policy if hiring sub-contractors.
When Hiring Independent/Sub Contractors: A true independent contractor is self-employed. He or she has a Federal ID# and maintains a business location.   In this case the party responsible for Workers’ Compensation depends on the number of hours worked, the method of operations, the raw materials and state laws.   Even if you think that they are responsible for Workers’ Compensation, you want to clear on this upfront and have contracts in place specifying whom is responsible for Workers’ Compensation. This is not just in the contracting arena; this is true for any sub-contractor, for example a website designer.
Volunteers: If they volunteer without pay or compensation then they are not employees and do not need Workers’ Compensation, but covering them could avoid costly lawsuits.
Sole Proprietorships/Partnerships – You can choose if you want to be covered or not, but the safer choice is to cover yourself in case an injury occurs while on the job. Many health insurance policies will not cover work related injuries.  If you’re not 100% sure that your business falls into this category, call us to be sure. (888)-343-7463
Special Employees – If you have special employees such as temps, borrowed employees or leased employees you want to be certain about who must provide Workers’ Compensation. Usually the company or the person who controls the work is also responsible for Workers’ Compensation. If you’re not sure, contact us (888)343-7463 and we can help you figure it out. 
Failure to obtain a Workers’ Compensation Policy when required constitutes a Class E Felony if you have more than 5 employees and a misdemeanor if you have less than 5 employees and it can cost you a large sum of money in penalties and the cost of a claim in an injury occurs.  
If you’re unsure if your business needs Workers’ Compensation, call or contact Executive Insurance & Financial Services and let our licensed & knowledgeable professionals guide you.  

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