Wednesday, November 16, 2011

Understanding Retail and Wholesale Businesses Workers Compensation Insurance Codes

New York State is famous for some of the best and most diverse retail and wholesale stores in the country. If you can't find it in NY, it probably can't be found. New York State is also famous for its mandatory workers compensation insurance laws. Any business with one or more employees must purchase and maintain proper levels of workers comp.Since workers comp coverage is mandatory, no business can be denied coverage, but that doesn't mean coverage is cheap. The New York State Insurance Fund, NYSIF, is mandated by the state to provide coverage to everyone and accept all risks. This allows new companies and businesses with a record of work injuries or work related illnesses to be insured, however the workers comp rates can be high. Businesses can also seek out insurance through private or mutual insurance companies and some self-insured options. Finding coverage outside of NYSIF can often result in significant premium savings.Insurance rates are determined by the type of work and the amount of risk involved in any industry and for any given job. The New York Compensation Insurance Rating Board, NYCIRB, created a complex set of codes for different jobs in different industries. Each job is assessed a level of risk. The codes are listed in a 35 page document.The code book is divided in to five groups and retail is one of the five groups. This covers many different types of businesses, everything from paint stores to bakeries to collections of container garbage to wholesale construction material. Many businesses must assign different codes to different workers. If a worker did various categories of work in a given time frame, assigning different codes can result in significant savings.If a retail business in New York State does not purchase workers compensation insurance for their work force they may face heavy fines and if an injury occurs they will have no legal protection against civil lawsuits. The codes and regulations can be tedious and confusing. Many businesses are now seeking the assistance of experts in decoding the complicated system and finding the best rates available for their individual businesses. Two similar businesses, with similar histories can pay very different premium rates and receive the same coverage if the incorrect codes and information is used.Proper coverage keeps businesses safe and provides important financial benefits for employees in case of work related injuries, however over paying premiums doesn't accomplish anything.

No comments:

Post a Comment