New York State OKs Workers’ Comp Reform:
On March 6, the New York State Senate and Assembly passed legislation aimed at repairing the state’s anemic workers’ compensation system while reducing employer workers’ compensation insurance premiums by as much as 10 – 15 percent. It also marks the first time in more than a decade that the maximum weekly benefit paid to injured workers will rise.

Other highlights of the reform include the following: 

• Increase the maximum weekly benefit for injured workers from $400 to $500 in the first year, to $550 in the second year, to $600 in the third year, and to two-thirds the state’s average weekly wage in the fourth year. After this time period, the maximum weekly benefit would be indexed annually.
• Increase the minimum weekly benefit from $40 to $100.
• Create programs aimed at getting disabled workers back to work more quickly.
• Increase penalties and sanctions with regard to employer  /employee workers’ comp fraud.
• Eliminate the Second Injury Fund, which allows some insurance carriers to avoid paying claims, thereby reducing special assessment costs made by employers to New York State.
• Provide premium credits to employers who create: a program to get injured employees back to work, a worker safety program, and/or a drug and alcohol program.

Reform: much needed relief for Upstate NY manufacturers
“The reform is an especially big win for Upstate NY manufacturers, who historically pay excessive workers’ comp premiums,” says Rubin Alspector, CPCU, senior vice president and captive specialist of The NIA Group and Kornreich-NIA organizations.  “In 2006, NIA partnered with Compensation Risk Managers, LLC, an administrator of workers’ compensation trusts, to provide New York manufacturers with cost-effective, results-oriented workers’ compensation programs. The new legislation should strengthen our ability to provide such programs to businesses upstate, which are a vital component to the economy.”

Employers should take advantage of premium credits to reduce costs; help employees
“It’s in the best interest of employers to offer rehabilitation and safety programs that can minimize the occurrence of on-the-job accidents and, if they do happen, enable workers to return to work quickly,” says Bill Cilente, executive vice president and Commercial Lines product coordinator for The NIA Group.  “This way, the employer earns premium credits and the employee receives prompt treatment and care.  Added benefits include reduced absenteeism and turnover and increased morale.”

Businesses do not have to bear the burden of developing safety / rehabilitation programs alone. NIA’s Workers’ Compensation Division designs and implements accident, safety and recovery programs that are customized to clients’ specific work environments. Once installed, NIA keeps a close eye on claims activity to ensure that the programs help lower the frequency, severity and types of claims made.  Interested in learning about NIA’s workers’ compensation programs? Click on How May I Help You.

Workers’ Compensation: Garden State Developments
Beginning April 1, 2007, Garden State companies will have a new option to control and perhaps lower their current workers’ compensation costs.  A new insurance company will enter the NJ insurance market to provide workers’ compensation aid to employers in virtually every business segment.  The NIA Group is among a select group of insurance brokers that can market the program.  For more information on this new insurance offering, please contact Elio Vecchiarelli, vice president of NIA, at 1.800.NIA.0106.

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