New legislation in New York restores the ability of thousands of state businesses to access affordable workers’ compensation coverage through the New York State Insurance Fund (NYSIF), the largest workers’ compensation insurer in the state. state and a centerpiece of the low-cost insurance market, Governor Kathy Hochul announced Friday.
New York law requires businesses to insure workers’ compensation coverage, which most obtain through NYSIF or a private insurer. But unlike private insurers, NYSIF insures any employer requesting coverage regardless of risk at the lowest possible cost to maintain a solvent fund. NYSIF can only cancel a policy for non-payment of premium and was previously barred from reissuing a policy to a company that owed the premium.
The new law will allow NYSIF to issue a policy to a business with an outstanding balance, allowing the business to pay the premium due on an installment plan. In doing so, the legislation will give more than 3,000 New York businesses renewed access to the largest segment of the low-cost insurance market, generating a total of $8 million in potential premium savings, or an average of approximately $2,000 per policyholder. .
“At the height of the COVID-19 pandemic, thousands of New York businesses struggling to stay afloat lost access to affordable workers’ compensation coverage when they needed it most,” Governor Hochul said. “But thanks to the bill’s sponsors, we are announcing actions to ensure businesses can continue to protect their workers with affordable coverage while addressing any back premiums. This bill will restore much-needed access, saving businesses everywhere.” the state millions of dollars in bonuses and helping their bottom line.
Under the new law, policyholders can work with NYSIF to set up a payment plan for both the outstanding balance and the new policy premium. All companies must also meet NYSIF’s general underwriting standards. For more information, visit www.NYSIF.com.
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