Struggling businesses have access to lower-cost workers’ compensation coverage
Press Release, Gov. Kathy Hochul’s Office
Governor Kathy Hochul on Friday announced that she has signed legislation restoring the ability of thousands of New York businesses to access low-cost workers’ compensation coverage through the New York State Insurance Fund, New York’s largest workers’ compensation insurer and a centerpiece of the State’s low-cost insurance market.
“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 today, thanks to bill sponsors Senator Ramos and Assembly Member Fernandez, we’re announcing action to ensure that businesses can continue to protect their workers with affordable coverage while addressing any back premium. This bill will restore much-needed access, saving businesses across the state millions of dollars in premium and helping their bottom line.”
New York law requires businesses to secure workers’ compensation coverage, which most obtain through NYSIF or a private insurer. But unlike private insurers, NYSIF insures any employer that applies for coverage regardless of risk at the lowest possible cost to maintain a solvent fund. NYSIF may only cancel a policy for non-payment of premium and until now was precluded from re-issuing a policy to a business that owed it premium.
The new law will enable NYSIF to issue a policy to a business with an outstanding balance, allowing the company to pay the owed premium under 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 an aggregate of $8 million in potential premium savings, or an average of approximately $2,000 per policyholder.
Gaurav Vasisht, Executive Director and CEO, NYSIF, said, “Thanks to Governor Hochul’s leadership, employers across New York can now stay insured by NYSIF and protect their employees during difficult times. The new law also affords NYSIF an opportunity to reconnect with our public mission, giving us the flexibility to help employers in distress and ensure a fair marketplace.”
Under the new law, policyholders can work with NYSIF to establish a payment plan, for both the outstanding balance and premium on the new policy. All companies must also meet NYSIF’s general underwriting standards. For more information visit www.NYSIF.com.