New York Workers Compensation Insurance for Food & Beverage Businesses
New York requires you to carry workers compensation insurance if you have employees on your payroll. Learn more about what this coverage is, how it protects you and your workers, and how you can get it from Food Liability Insurance Program (FLIP)!
What Is Workers Compensation Insurance in New York?
If one of your employees develops a work-related injury or illness, workers compensation insurance provides the following benefits to you and your employee:
- Medical and rehabilitation payments for your employee
- Temporary payments to cover your employee’s lost wages
- Financial compensation for permanent effects of your employee’s injury or illness
- Death benefits to your employee’s dependents if they die as a result of their injury or illness
- Legal representation and protection for you, the employer, against lawsuits over work-related injuries or illnesses
New York’s Workers Compensation Board (WCB) is the agency that oversees the delivery of workers compensation benefits and provides educational resources for employers like you to ensure compliance with state laws.
Who Is Required to Have Workers Compensation Insurance in New York?
Nearly all businesses with one or more employees are required to obtain workers compensation insurance in New York, including for-profit businesses like food trucks and concessionaires.
In New York, an employee is anyone (including a family member) who performs their job duties under your direction, supervision, and control. This includes workers who are:
- Part-time
- Full-time
- Temporary
- Seasonal
- Day laborers
- Leased
- Borrowed
- Unpaid/volunteers
Are Independent Contractors Covered Under My New York Workers Compensation Policy?
Independent contractors are not considered employees under New York’s workers compensation laws, and are therefore not eligible for benefits.
However, many employers classify their workers as independent contractors when they aren’t — either mistakenly or intentionally. Your workers may be independent contractors if they fit they fit the WCB’s classification criteria, which includes:
- Having their own Federal Employer Identification Number (FEIN) or filing business/self-employment income tax returns in the previous calendar year
- Performing their service without your direction or control
- Working for other businesses
- Doing a different type of work/service than your business does
Which New York Food and Beverage Businesses Need Workers Compensation Insurance?
If you run one of these types of businesses and have one or more employees, you need New York workers compensation insurance.
These businesses are all eligible for an online workers compensation policy from FLIP. If you don’t see your business type listed here, please contact us to speak with a licensed, non-commissioned agent. They can provide more information about who qualifies and how you can secure coverage.
How Does Workers Compensation Insurance Work in New York?
In New York, you can choose between buying workers compensation from the New York State Insurance Fund (NYSIF) or a private insurer like FLIP. With FLIP, you can get a free quote online and easily bundle your workers compensation coverage with a general liability policy.
Your workers compensation policy is made up of two parts that work together to cover expenses stemming from work-related injuries and illnesses:
- Part One: Workers Compensation
- Part Two: Employers Liability
Part One: Workers Compensation
Unlike most insurance policies, Part One of your policy doesn’t have standard limits. That’s because it pays the amount New York State requires in the event of an employee injury, such as the employee’s lost wages and medical bills. Because these requirements vary from state to state, Part One doesn’t have specified coverage limits.
Part Two: Employers Liability
While Part One covers your employee’s expenses, Part Two is designed to pay for yours if an employee sues you over a work-related injury or illness. An employee may sue you over damages that New York’s workers compensation laws don’t cover.
This part of the policy does have standard limits. FLIP’s limits for employers liability coverage are:
- $1,000,000 aggregate (per policy)
- $1,000,000 occurrence (per claim)
- $1,000,000 per employee
If an employee sues you for a work-related injury — say, claiming negligence — FLIP’s employer’s liability coverage could pay up to $1,000,000 for that specific claim (per occurrence and per employee). If multiple lawsuits are filed during your policy period, the policy would cover up to $1,000,000 total across all claims (aggregate limit).
What Business Information Is Needed for a New York Workers Compensation Quote?
To get your quote from FLIP, you’ll need the following information on hand:
- Your Federal Employer Identification Number (FEIN)
- The type of business you run (food truck, catering, etc.)
- Your business address
- Your phone number
- Your employee payroll
- Your owner/office payroll (if you would like to be included in the coverage)
Note: When filling out your application, you must select the type of business that best describes yours. Selecting the wrong business class can cause delays, meaning it’ll take longer for you to receive your quote.
How Long Does It Take to Get Insured in New York?
In most cases, it takes about 10 minutes to get your online workers compensation quote from FLIP.
Please note that some businesses need extra attention from our underwriting team to prepare an accurate quote. If your business falls into this category, we will notify you during the application process and automatically forward your information to one of our underwriters. Once you submit your application, they can begin working on your quote.
How Much Does Workers Compensation Cost in New York?
The cost of workers compensation insurance can vary widely depending on these factors:
- Your employee payroll
- Your industry’s risk classification
New York assigns a level of risk to each type of industry. The riskier your industry, the higher your workers compensation premium.
Your premium is also subject to adjustment at the end of your first policy year. FLIP will conduct an audit comparing your estimated payroll at the start of your policy with your actual payroll and other factors to determine if your premium is accurate.
Depending on the results of this audit, FLIP will either issue a refund or charge you an additional premium to ensure you aren’t paying too much (or too little) for your coverage.
What Are Some Common Workers Compensation Claims in New York?
Common workers compensation claims in the food and beverage industry include:
- Burns and scalds
- Example: An employee burns themselves on a hot stove
- Cuts and lacerations
- Example: While slicing fruit for a pie, an employee severs the tip of their finger
- Repetitive stress injuries
- Example: An employee develops a musculoskeletal injury in their shoulder from repeatedly lifting heavy bags of flour
- Burns and scalds
- Example: An employee burns themselves on a hot stove
- Slip-and-fall injuries
- Example: An employee slips on the wet floor in the commercial kitchen you rent and breaks a rib in the fall
- Worsening pre-existing conditions
- Example: After injuring their wrist on the job, an employee’s arthritis gets worse in that same wrist
- Exposure to hazardous materials
- Example: An employee develops a respiratory illness after using toxic cleaning products
- Mental health conditions related to stress*
- Example: An employee develops depression after suffering a serious injury at work
*This is hard to prove and receive workers compensation benefits for; generally, unless the mental health condition directly stems from work-related trauma or injury, workers compensation won’t cover it
What Does Workers Compensation Insurance Cover in New York?
New York workers compensation insurance is designed to cover the following expenses:
- Health care: This includes costs associated with medical, dental, optometry, surgical, assistive devices, and necessary medications
- Lost wages: Injured employees can receive a portion of their lost wages if it either keeps them from work for more than seven days or they face reduced pay because they have to work fewer hours or do different work
- Survivor benefits: If an employee dies on the job, their surviving spouse, children, and/or other dependents are eligible for benefits, including weekly cash payments equal to ⅔ their weekly wage and funeral/memorial expenses within a limit set by their county
What Workers Compensation Doesn’t Cover
Just because an employee gets hurt at work doesn’t mean they necessarily qualify for workers compensation benefits. The following incidents are excluded from coverage:
- Injuries sustained while your employee was intoxicated
- Injuries sustained because your employee violated company policy
- Intentional injuries your employee inflicted upon themselves, such as in an effort to abuse the workers compensation benefits system
Why Choose FLIP for Workers Compensation Insurance in New York?
FLIP offers top-of-the-line workers compensation insurance for New York food and beverage businesses. Here are just some of the perks of a FLIP policy:
Compliant Coverage
Ensure your business follows New York State laws and avoids fines and penalties with coverage you can trust.
Painless Online Application
Most business owners can get their quote online in 10 minutes — about the time it takes to make a hard-boiled egg.
Flexible Payments
Choose from several affordable payment plans, including annual, quarterly, semiannual, and monthly* options.
Customization Options
Easily bundle your workers compensation coverage with general liability insurance and other optional add-ons.
*Monthly payments are only available for policies exceeding $1,000 per year.
What Our Customers Are Saying
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If you don’t have employees, you are not required to have workers compensation insurance. However, many New York employers buy this policy for themselves because many personal health insurance policies won’t cover expenses stemming from work-related injuries.
Uninsured employers are subject to penalties, including fines and permanent business closure. Your affected employee can still sue you to pay for expenses that could’ve been covered by a workers compensation policy, such as medical bills and lost wages.
If your employee takes you to court and you’re found to have intentionally avoided getting workers compensation insurance, you may even face criminal charges.
The Notice of Compliance is a New York mandate requiring all employers to post a notice of workers compensation coverage where your employees can see it. This is also known as your certificate of insurance.
For example, if you run a food truck business, you might post your notice on the wall inside the truck in a spot that is easily visible to any employees working in your truck. FLIP makes it easy to download and print your certificate from your online user dashboard.
