You may know that workers’ compensation insurance is a must for every business. But, did you know that even with workers’ compensation insurance you can find yourself without coverage?
Here in New York State, businesses can choose to get insurance either through the New York State Insurance Fund (NYSIF) — a government-run insurance carrier — or from a private insurance carrier. Other states have similar programs.
NYSIF and other state workers’ comp plans are popular among businesses. What many businesses don’t realize, though, is that they fall short in two critical areas:
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They do not include employers liability insurance, which protects you from legal action after the injury, illness or death of an employee
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They do not cover steady work done outside of the state in which your business is located.
Let’s dive a bit deeper into each of the above benefits to better understand why they’re so important.
Employer’s Liability Insurance
Before Eric* was our client, he ran a catering business. One of his drivers was in a serious car accident while on the job, and tragically, the driver passed away. The driver’s family sued Eric’s company. Because Eric had insurance through NYSIF and therefore did not have employers liability insurance, he had no insurance protection for the defense of the lawsuit.
Of course we changed his workers comp insurance policy to a private carrier, and now he has peace of mind knowing that any future legal costs associated with claims of negligence that result in injury or illness will be covered.
Jobs Outside of NY Are Not Covered
Say you’re a contractor from NY and hire a subcontractor from NJ. Even if they have a certificate of workers’ comp insurance in NJ, that doesn’t mean they are covered in the state of NY. They could be considered an ‘uninsured sub’ when they work for you in NY.
Another scenario: You run a business based in the tristate area, and your workers often need to cross state lines.
Even if you don’t currently have out-of-state contractors or workers crossing state lines, you don’t want to find yourself in a situation where you’re not covered and suffer the consequences of a very preventable situation.
*Name changed to protect privacy
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If you’re in need of a workers’ compensation insurance plan, know that Adler’s Insurance is here to help. We’ll compare plans offered by private carriers to find one that not only addresses your business’s unique needs but also covers the most extensive range of benefits — including employers liability insurance and coverage outside of NY.
Contact us today at (845) 356-5656 to learn more.