Workers' Comp or DB?

Know the Difference

Workers' Compensation

Workers’ compensation insurance is mandatory for most employers of one or more employees. It protects employers from liability for on-the-job injury or illness resulting in employee disability or death, and provides injured workers with monetary relief and medical benefits; in death cases, it provides survivor benefits to dependents.

Employers in New York State must meet this obligation by one of three ways:

  • Insuring with the New York State Insurance Fund (NYSIF)
  • Insuring with a private insurance carrier
  • Self-insuring, or being a member of a self-insured trust

Disability Benefits & Paid Family Leave

Disability benefits insurance is mandatory for most employers of one or more employees. It pays a temporary cash benefit for employees who are disabled by off-the-job injury or illness, and for disabilities arising from pregnancies, for up to 26 weeks. Medical care is the responsibility of the claimant. Covered employers must purchase an insurance policy or apply to the chair of the Workers’ Compensation Board for approval as a self-insurer.

Premiums may be paid entirely by the employer or paid jointly by the employer and the employee. New York State Law allows (but does not require) employers to deduct one-half of one percent of an employee’s wage, up to a maximum of $.60 per week, to offset the cost of disability benefits insurance.

Paid Family Leave insurance is mandatory for most private employers with one or more employees. PFL provides claimants with job-protected, paid leave to bond with a new child, care for a loved one with a serious health condition or to help relieve family pressures when someone is deployed abroad on active military service.

NYSIF offers Paid Family Leave coverage only as part of a disability benefits policy.

PFL is funded through employee payroll deductions. Employers are responsible for collecting the appropriate PFL contributions to cover the cost of the program. The maximum employee contribution in 2018 shall be 0.126% of an employee’s weekly wage up to the annualized New York State Average Weekly Wage.

Use our premium calculator estimate your premium.

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