5 Best Workers’ Comp Insurance in NY Options for 2020 • Benzinga


Workers’ compensation insurance helps protect employees who face workplace injury. It can also protect your company from paying hefty fees in insurance claims and lawsuits. This type of insurance covers the expenses of a workplace injury, from employee health care bills and loss of wages to employer legal fees.

This guide walks you through everything you need to know as an employer about workers’ comp insurance in New York. It explains the laws, costs and benefits associated with workers’ comp insurance and reviews the top 5 workman’s comp insurance companies in the state.

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The Best Workers Comp Insurance in NY:

New York Workers’ Compensation Insurance: An Overview

In New York, it is almost always required that companies obtain workers’ compensation insurance to protect themselves and their employees, both full time and part time. Workers’ compensation insurance is no-fault insurance that will cover both parties during most workplace accidents.

Not all workplace accidents are covered by workers’ comp insurance. Here are a few examples of injuries your insurance plan won’t pay for:

  • Injuries while commuting to or from work
  • Injuries obtained offsite
  • Injuries caused by the use of illegal substances

Here are a few important statistics to consider about workplace injuries in New York:

Workers’ comp insurance is mandatory in New York. Here are some quick facts: 

  • Number of fatal injuries annually: In the United States, 5,190 workers died due to work-related injuries in 2016. In New York, 272 workers died due to occupational injuries.
  • Employers cost per $100 of covered payroll: The cost for employers per $100 of covered payroll in 2016 in New York was $1.50.
  • National ranking (1= largest % increase from 2012-2016): New York ranks 9th in the country for the largest percentage of increase in the cost of workers’ compensation insurance.
  • Low rate per $100 in payroll: The low rate per $100 in payroll for clerical employees in New York is $0.07.
  • High rate per $100 in payroll: The high rate per $100 in payroll for labor employees in New York is $29.93.

How Does NY Workers’ Compensation Law Work?

Workers’ compensation insurance is a type of insurance coverage purchased by businesses to protect employees. This insurance offers protection against expenses relating to healthcare, rehabilitation, disability (short- and long-term) and fatalities caused by workplace injuries. 

In New York, workers’ compensation insurance is mandatory for all businesses to provide to their employees, with a few exceptions. Employers without workers’ comp insurance in the Empire State can be fined a penalty fee of $2,000 per 10 days of noncompliance, along with being charged for the full amount of an employee’s work-related injury expenses. Additional noncompliance charges may apply, as well.

Although workers’ comp insurance is generally mandatory, there are a few exceptions to this rule. Sole proprietors or business partners without employees are not required to purchase workers’ comp insurance but can purchase it for themselves if they choose. If you begin to hire employees, however, this purchase becomes mandatory.

New York is a no-fault insurance state, which means that when an accident occurs, the employee will still receive their benefits regardless of who is at fault. Most insurance companies require employees to report workers’ comp accidents within 30 days, though some extend the window to 60 days. An employee claim or C3 form will be filled out when an accident is reported.

Employer Cost for Workers Compensation

When deciding on workers’ compensation insurance, you’ll likely be focused on price. It’s important however to balance your workers’ needs with your own budget before simply settling on the most affordable insurance option. Be sure to thoroughly research your coverage options and compare plans before making a decision.

The price of workers’ compensation in New York is the highest in the country. Prices will vary depending on your industry. While most states use the National Council on Compensation Insurance (NCCI) to determine rates and review workplace data, New York uses its own rating board — the New York Compensation Insurance Rating Board.

Let’s look at what you can expect to pay for your workers’ comp insurance using the data below. Please note, this table assumes you have at least 5 employees and pay a state fee of $250.

Class Code Class Code Description Rate Annual Pay State Fee Annual Employer Premium
0042 Lawn Service and Maintenance $9.21 $26,920 $250 $13,646.65
5102 Metal Building Construction $19.49 $48,700 $250 $48,708.15
5190 Electrical Work- Electrician $8.37 $55,190 $250 $24,347.00
7720 Security Guards- Patrol Officers $3.69 $28,041 $250 $6,423.55
8869 Child Care Center- Daycare Providers $1.43 $24,610 $250 $3,009.60

This section assumes the employer has 5 employees and the Experience Modifier is 1.

4 Types of Workers’ Comp Benefits

When an employee receives workers’ comp, there are 4 main types of benefits they might be eligible for. They include:

  1. Wage replacement benefits: This benefit allows workers to receive a portion of their salary if they’re unable to work due to an occupational injury or illness. Workers won’t receive their full wages, but will instead receive 2/3s of their previous gross salary. You must be unable to work for 7 days to claim this benefit.
  2. Permanent partial disability benefits: Also known as a supplemental benefit, permanent partial disability benefits allow workers to obtain wages or a lump sum of money in the event of a serious injury in the workplace. In order to qualify, a worker’s doctor must show evidence that the injury will permanently impact a worker’s ability to perform their job long term.
  3. Vocational rehabilitation benefits: When a worker is no longer able to work in their field of occupation due to an injury or illness, vocational rehabilitation benefits can help them obtain training for a new occupation. The money supplied by this benefit might cover training, job counseling or even trips to job fairs and interviews.
  4. Medical benefits: New York workers are entitled to full medical benefits, as needed, under New York workers comp law. Medical benefits cover healthcare-related expenses, like hospital fees, doctor’s visits, prescriptions, physical and occupational therapy sessions, medical supplies and more. Injured workers may need to visit doctors covered in-network, based on their employer’s plan.

Best Workers Comp Insurance in NY

Now that you understand how workers’ comp insurance plans work in New York, you’re ready to start comparing carriers. We’ve highlighted the top 5 providers in the Empire State and grouped them into categories to help you find the perfect fit.

1. Zurich: Best for High-Risk Companies

Zurich is a well-known name in the insurance world, offering a variety of liability services, as well as workers’ compensation coverage. This insurance provider has affordable coverage options available for companies with more than 100 employees, offers stopgap coverage to get your employees the money they need right away and offers risk mitigation services to help prevent or reduce the severity of workplace injuries.

Large companies with other insurance needs like management risk, builders risk, accident and professional liability coverage can combine all of their plans into one with Zurich.

2. Hartford: Best for Mid-Sized Businesses

If you’re a small to mid-size business in New York looking for the best rates and service for workers comp policies, you’ll want to check out the Hartford. The Hartford is a top-rated commercial insurance carrier, offering services like workers’ comp and liability.

It offers many inclusion services, like stopgap coverage, voluntary compensation and extended injury reporting (allowing work accidents to be reported in 60 days, instead of the standard 30). This carrier can best accommodate the needs of administrative businesses like offices. It also offers discounts for bundling insurance packages.

3. Liberty Mutual: Best for Local Service

Liberty Mutual has a distinct advantage over many other large insurance companies — local service. With local agents all across New York, your company will be matched with an insurance partner designed to help meet your specific needs.

It will also work with your company on risk assessment and preventive measures to make your company a safer work environment. This insurance company has a high consumer rating and offers services best for large, low-risk companies, like retail shops or accounting offices.

4. biBERK: Best for Fast Coverage

Owned by Berkshire Hathaway, biBerk is an online insurance provider designed to meet your company’s specific insurance needs. With a 3-step coverage process, your company can purchase workers’ compensation insurance quickly and easily.

Depending on your industry and location, you might even receive a 20% discount by purchasing workers’ comp insurance online. This insurance provider is well known for its simple application process and high level of service, but rates may be slightly too high for some small business owners.

5. Hiscox: Best for Small Businesses

Hiscox knows that small business owners have no time to waste, which is why they’ve made its online application process quick and simple. Hiscox offers online quotes and additional small business insurance options, like general liability, professional liability and a business owner’s policy, which can be bundled with workers’ comp coverage. Hiscox offers policies specifically tailored to your small business’s needs and can begin coverage the day you apply. 

Find Affordable Workers Compensation in New York

Don’t put your employees’ safety at risk. Workers’ compensation is not only required by New York law, but it can provide the funds and reassurance your employees will depend on if a workplace accident were to occur. Shop around before selecting a workers’ compensation insurance plan to ensure you’re getting not only the best price but all of the coverage you need. Be sure to compare traditional insurance plans with online coverage.

Frequently Asked Questions

1) Q: How long can an employee stay on workers’ compensation?

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1) Q: How long can an employee stay on workers’ compensation?

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Courtney Johnston

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The length of time that an employee can remain on workers’ compensation is set by the state. Usually, the range is from 3 to 7 years. In addition to that, there is generally not a limit for permanent disability benefits unless you live in a state that terminates the benefits at age 65. For employers seeking the cheapest workers’ compensation insurance, check out these top providers.

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2) Q: Who pays for workers’ compensation benefits?

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2) Q: Who pays for workers’ compensation benefits?

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Courtney Johnston

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The employer is responsible for purchasing workers’ compensation insurance to cover the benefits of employees. The must pay a monthly premium based on class code and payroll. To get a custom workers’ compensation quote, click here.

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3) Q: Do I have to get workers’ compensation insurance?

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3) Q: Do I have to get workers’ compensation insurance?

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Courtney Johnston

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This depends on which state you have employees. The following states require workers; compensation under specific requirements: AK, CA, CO, CT, DE, HI, IL, IA, KS, KY, MD, MA, MI, MN, MS, NH, NJ, NY, NC, OH, OK, SC, SD, UT, WA. To get the best workers’ compensation premium, enter your zip code here

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