Insurance is an essential tool of risk management and helps employers reduce the financial burdens of possible losses. The following will introduce three basic insurances in New York State for businesses.

1.      Business Liability Insurance

Business liability insurance is not mandatory in New York State, but it can protect your business from financial losses resulting from various claims, including bodily injury, property damage, personal injury, advertising injury and others caused by your business operation. And landlords may require you to maintain a certain level of liability coverage as a condition of your lease.

The premiums are typically based on the level of the coverage, the nature of the business, the number of employees, the location of operation, etc.

2.      Workers' Compensation and Disability Insurance

In New York State, employers are required to obtain and keep in effect workers' compensation and disability benefits coverage for all full-time and part-time employees.

Workers’ compensation covers employees for loss of income and medical expenses through job related accidents. The cost of the insurance must be paid entirely by the employer, no amount can be charged to employees. Federal Employer Tax Identification Number (FEIN) is required to obtain a Workers’ Compensation and is the primary identification to the NYS Workers Compensation Board.

Disability insurance covers them for loss of income if they become disabled off the job.The Disability Benefits Law provides weekly cash benefits to replace, in part, wages lost due to injuries or illnesses that do not arise out of or in the course of employment. Benefits are paid for a maximum of 26 weeks of disability during 52 consecutive weeks.

Failure to provide the required insurances will subject the employer to penalties by the government according to the noncompliance period and numbers of employees.