Getting hurt on the job is never a fun experience. Medical bills pile up, you’re sidelined from your paycheck, and worry sets in about how you’ll cover everyday costs. That’s where workers’ compensation insurance steps in.
You can think of workers’ compensation as a safety net specifically for work-related injuries and illnesses. It’s business insurance that serves as a lifeline for injured workers. It is also a legal requirement for nearly every New York employer.
If you or a loved one has been hurt on the job or while in the performance of job-related duties, you might feel lost about where to turn. The good news is that you’re not alone. The skilled construction accident attorneys at Schwartzapfel Lawyers have more than (150) years of combined experience fighting for the rights of injured workers.
Contact us online or call 516-342-2200 today for a free consultation. In the meantime, read on to learn who pays for workers’ compensation.
What Is Workers’ Compensation?
Workers’ compensation insurance is a special type of insurance that most New York employers are required to carry. If you’ve experienced a work injury, this insurance provides crucial benefits, such as:
- Medical Treatment: Your job-related medical expenses are covered. This coverage includes medical care provider visits, hospital stays, prescriptions, physical therapy, and other costs related to your recovery.
- Wage Replacement: Miss out on work because of your injury? You may be entitled to cash benefits that are equal to typically about two-thirds of your regular wages to replace some of that lost income.
- Disability Benefits: If your work injury leaves you with a permanent disability, you might qualify for additional benefits that help you financially cope with the change.
- Death Benefits: In the worst-case scenarios, workers’ comp insurance can provide financial support to the dependents of employees who tragically lost their lives due to work-related injuries.
While regular employees are typically eligible for workers’ compensation, most states make exemptions excluding independent contractors, domestic workers, and agricultural workers.
Workers’ comp benefits are very helpful to injured employees and their families. However, fighting for the compensation you’re entitled to isn’t always a smooth experience.
Insurance companies might question your claim, and taking on the workers’ compensation system alone can be a headache. That’s where experienced workers’ compensation attorneys come in — and we’re here to help.
Connect with Schwartzapfel Lawyers before your window of opportunity closes. Dial 516-342-2200 or visit us online to schedule your free consultation today!
Who Pays For Workers’ Compensation?
In New York State, your employer foots the bill for workers’ compensation insurance. It’s the law. You don’t need to worry about them passing that cost on to you because they legally can’t. So, you probably won’t find any surprising deductions from your paycheck for this coverage.
State laws may vary, however, so you’ll want to check with your state agency to verify its status if you live outside of New York.
Now, how exactly do employers get workers’ compensation insurance? They have a few options:
- Private Insurance Carriers: Plenty of private insurance companies offer workers’ compensation coverage. Think of them like car insurance, but specifically for workplace injuries. Your employer shops around, compares policies, and chooses the best fit for their business.
- New York State Insurance Fund (NYSIF): NYSIF is a state-run option for employers. It’s like the government’s own insurance company designed for workplace injuries. Some businesses might find competitive rates or other perks by going this route.
- Self-Insurance: Huge corporations with the resources to manage their own workers’ compensation system can consider self-insurance, but smaller businesses usually steer clear.
Workers’ compensation benefits are non-negotiable. It’s the cost of doing business and keeping employees safe. Employers are on the hook for making sure the right insurance coverage is in place. They choose how to get that coverage, but having it is mandatory.
Why is all this important for you, the injured employee? Because it’s the insurance carrier that ultimately determines whether your claim is valid and starts paying out those crucial benefits.
Communicating with insurance companies can be confusing. Thankfully, having an experienced workers’ compensation lawyer on your side can make a world of difference because they’ll fight to get you all of the compensation and benefits you deserve.
Every seasoned member of Schwartzapfel Lawyers is committed to fighting for your rights, and we encourage you to contact us if you experienced an injury at work or while in the performance of job-related duties. For a free consultation and so much more, call us now at 516-342-2200 or visit us online today.
How Does This Insurance Protect Employers?
Workplace accidents happen. Even the most safety-conscious businesses can’t prevent every slip and fall, trip, or equipment malfunction. That’s why workers’ compensation insurance is such a genius system — it protects both businesses and their employees. However, there is a trade-off. Let’s take a look:
Injured Workers Get Help, Regardless Of Fault
If you’re hurt on the job, workers’ comp kicks in. You get your medical bills covered, some income replacement, and possibly other benefits to get you back on track. The best part? It doesn’t matter if the accident was your fault, the result of clumsiness, pure bad luck, or even a coworker’s mistake.
Legal Representation
If your employer challenges your workers’ compensation claim, they are obligated to bring in lawyers to fight against your claim — which creates an added expense for your employer that they’d likely prefer to avoid.
Some employers might see the cost of workers’ compensation coverage as a pain. However, smart business owners understand the value of this protection. If an emergency strikes, they’ll be glad it’s there.
Workers’ compensation insurance works the same way, providing a safety net when accidents happen. However, that doesn’t mean there won’t be disputes and disagreements along the way — and that’s where experienced workers’ comp lawyers step in.
How Can Employers Reduce Costs?
Workers’ comp insurance premiums can be a hefty business expense for large and small businesses alike. However, employers can potentially save money using these tactics:
Shop Around Early
Don’t wait until the last minute to get insurance quotes. Start your search well before your current workers’ compensation policy expires. Comparison shopping between different insurance carriers can lead to finding better rates and coverage options that suit your business. An experienced insurance broker can help you find the best deals in the marketplace.
Classify Your Employees Correctly
Misclassification is a relatively minor mistake that can cost you big time during an audit. Illustrating this, insurance companies classify employees based on how risky their jobs are.
Plumbers, for instance, pay a different rate than office clerks. If you incorrectly classify a higher-risk worker into a lower-risk category to save a few bucks, you’ll be given penalties and back payments later. It’s just not worth the gamble.
Ask About Alternative Plans
Many insurance carriers offer different ways to tailor your workers’ comp insurance policy. To this end, you may want to explore whether opting for a higher deductible works for you, or perhaps your company can benefit from a premium discount program linked to strong safety practices. These options can impact your overall cost, so ask what’s available before you choose.
Do Your Homework On Insurance Carriers
Not all insurance companies are created equal when it comes to how they handle workers’ comp claims. Some are more aggressive about paying out benefits, while others might seem to fight every claim tooth and nail.
Ask around about the reputation of different carriers, and consider how their claims philosophy might impact your bottom line in the long run.
Stay On Top Of Your Subcontractors
Suppose you’re a general contractor, and you’ve hired a bunch of subcontractors to work on a project. If one of those subcontractor’s employees gets hurt and they don’t have their own workers’ compensation insurance, you could be on the hook for their medical bills and other benefits.
Note: Before you hire any subcontractors, you should make sure they have proof of their own workers’ comp coverage. Get that certificate in your hands. Insurance premiums can feel like a never-ending drain on your company’s finances.
Here, it’s important to understand that workers’ compensation is essential not just for your employees but also for protecting your business. In this way, implementing these cost-saving strategies is key to getting the coverage you need without breaking the bank.
Moreover, a proactive focus on workplace safety can make all the difference in lowering risk and saving costs long-term. As such, it’s a veritable win-win.
Injured On The Job? Schwartzapfel Lawyers Can Help
If you or a loved one has experienced an on-the-job injury, don’t delay. Get the medical treatment you need right away, then call the award-winning New York workers’ compensation attorneys at Schwartzapfel Lawyers.
With over (150) years of combined experience, we’ll fight for you every step of the way. Call us now at 516-342-2200 for your free consultation. Remember, time is of the essence when it comes to workers’ comp benefits — don’t wait to take action. Act now and call Schwartzapfel Lawyers at 516-342-2200 now!
DISCLAIMER: Nothing on this page should be considered legal advice. You should seek the appropriate counsel your situation requires. For more information, call 516-342-2200 now!
Sources:
Schwartzapfel Lawyers, P.C. | Fighting For You
Workers’ Compensation Lost Wage Benefits | NYS Workers’ Compensation Board
What is Workers’ Compensation? | NYS Workers’ Compensation Board
Misclassification of Employees | U.S. Department of Labor (DOL.gov)
