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New York State Workers' Compensation Laws require all employers to provide their staff with Workers Compensation Coverage with an insurance carrier authorized by the New York State Workers' Compensation Board (WCB). Premiums for this line must be paid entirely by the employer, and no amount either in part or in full can be charged to the employees.
How much does NY Workers' Comp Cost?
The Board has the legal authority to fine those that do not comply with obtaining the required coverage. The Board does not provide insurance, pay claims, or oversee the insurance carriers. By purchasing insurance, the employer is fulfilling the statutory obligation to pay medical, indemnity and death benefits under the law. Premiums will be based on the employer's potential for claims including individual experience, employee wages or payroll and the type of industry in which they are engaged in.
There are over five hundred (500) classifications of workers, each representing a different risk. This is a premium determining factor. A classification code assigned to an employer is based most closely on the type of work being performed. In most cases employees of one company will be categorized into different classes with some of the employees being grouped into the class that is referred to as standard exception classifications. This may include jobs that are common to many businesses such as clerical workers, drivers, messengers, and outside salespeople. In some cases though, all of the employees within the same business are assigned to the same class.
A secretary in a construction firm, who works in the business office and is not exposed to the hazardous part of the industry, will be included in the clerical class, and not in a more expensive construction classification.
Individual businesses doing similar work are grouped together within the same classification because they entail similar risks. Each class is assigned its own loss cost based on its contribution to total workers' compensation costs. The loss ratio or Mod is based upon the average loss experience of all the members of that industry as a whole or the likelihood of injuries in that occupation and not the accident history of that individual company.
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