What a Business Owner Needs to Know

Workers’ Compensation plays a vital role in treating numerous patients with work-related injuries. However, there are instances where a patient’s employer hasn’t acquired Workers’ Compensation insurance, leading to challenges in covering medical costs. This article aims to shed light on Workers’ Compensation insurance for employers.

Please note that we are not an insurance agency or law firm; we are medical providers specializing in treating orthopedic injuries. Hence, before making any final decisions, it is advisable to contact your insurance company, agency, or attorney. Reach out to us specifically if your employee is dealing with orthopedic injuries.

In New York state, Workers’ Compensation insurance is mandated to cover work-related accidents, injuries, and illnesses. It not only provides medical treatment and wage replacement but also shields injured patients from legal actions.

In addition to Workers’ Compensation, New York state requires disability benefits insurance to protect employees in work-related incidents. However, it’s crucial to note that disability insurance doesn’t cover medical benefits.

Determining who needs coverage is essential. Companies with employees fall under the mandate for Workers’ Compensation coverage. An employee is broadly defined as someone providing a service to a business, with limited exceptions for compensated individuals.

The cost of Workers’ Compensation insurance is determined by classification codes, which assign values based on the level of hazardousness in various types of work. Your business practices and safety measures compared to others in your industry also impact the cost. It’s recommended to be aware of independent contractors in your area, as misconceptions about their status can lead to complications when injuries or illnesses occur.

Some employers may consider hiring independent contractors to avoid payroll withholdings and provide larger paychecks. However, the validity of independent contractor status is determined by criteria such as equipment usage and business ownership. Employers using subcontractors must ensure they have insurance and receive notifications about lapses in coverage.

Employers should purchase Workers’ Compensation insurance with a monthly and down payment to avoid situations where subcontractors lapse on coverage. Non-compliance with New York state mandates for disability benefits and Workers’ Compensation can result in severe penalties, so it’s crucial to apply the correct codes and follow up on claims.

Employers need to notify their insurance carrier when an employee tests positive for COVID-19 in a work-related context. The COVID-19 Quarantine Leave offers job protection and wage compensation during mandatory or precautionary orders of quarantine or isolation for employees or their minor dependent children.

To avoid discrimination claims, employers should be aware that terminating employees is only permissible for valid reasons such as misconduct or insubordination, not for filing a Workers’ Compensation claim. Immigration status does not impact Workers’ Compensation claims. Stay informed about workplace safety programs and provide necessary information about paid family leave to employees and the insurance carrier.

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