New York Offers Plan for Businesses With Unpaid Workers’ Comp Premiums

Governor Kathy Hochul has signed legislation to help employers with unpaid workers’ compensation premiums regain access to coverage through the New York State Insurance Fund, the state’s largest workers’ compensation insurer.

New York law requires businesses to have 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. 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. 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.

Supporters of the legislation said it will give more than 3,000 businesses renewed access to the NYSIF’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,” Hochul said. “This bill will restore much-needed access, saving businesses across the state millions of dollars in premium and helping their bottom line.”

“With the signing of this piece of legislation, business owners can now start a new insurance policy while paying back their previous policy,” said Assembly member Nathalia Fernandez, who sponsored the legislation along with State Senator Jessica Ramos.