Workers’ Compensation Coverage for Hedge Funds in New York
Understanding the Workers’ Compensation insurance requirements for your hedge fund is of the utmost importance. Shirking your company’s insurance responsibility might lead to serious consequences in New York.
The Workers’ Compensation claims process is relatively straightforward when hedge funds have workplace liability insurance in New York. After employers inform their carriers of workplace accidents, the carriers will handle the investigations and claim approvals and denials. When hedge funds do not have the mandatory coverage, they will undoubtedly be faced with civil penalties from the New York State Workers’ Compensation Board. On top of those penalties, hedge funds may become vulnerable to civil litigation from employees who are unable to file Workers’ Compensation claims. For these reasons and many more, securing Workers’ Compensation is crucial for hedge funds in New York.
When employers are in need of coverage, they can call the New York Workers’ Compensation insurance brokers at NPN Brokers at (866) 340-9120.
Workers’ Compensation Claims Process for Hedge Funds in New York
When hedge funds in New York get coverage from our Workers’ Compensation insurance brokers, they do not have to handle the claims process themselves. Instead, their workplace liability insurance carriers will take care of the process, determining whether or not claims are fraudulent and paying out benefits to injured workers accordingly.
First Report of Injury
The main responsibility of hedge funds following a workplace injury is to inform their Workers’ Compensation insurance carriers. This must be done within ten days of being notified of an employee’s injury or illness in New York, provided the employee needs medical care or has missed at least one day of work because of their condition. Hedge funds that do not report workplace injuries to Workers’ Compensation insurance carriers within the appropriate timeframe may be financially penalized in New York.
After being notified of a workplace accident, the insurer of the hedge fund will oversee an investigation. The policy provider might request additional information about the circumstances surrounding the workplace accident, such as if the employee was under the influence of drugs or alcohol at the time. The insurer may also interview a claimant’s peers and managers to learn if the injury was caused intentionally. If fraud is involved in the claim, the insurer might deny it.
Claim Approval and Paying of Benefits
Within 18 days of being informed of a workplace accident at a hedge fund in New York, an insurer will either begin paying benefits to an injured worker or contest a claim. If a claim is approved, the hedge fund employee will start getting payments, to be paid every two weeks. Lost-wage Workers’ Compensation benefits are generally two-thirds of a worker’s average weekly wage. The degree of the employee’s temporary disability might also be used to calculate lost-wage benefits in New York. Medical benefits are also provided to hedge fund workers covered by Workers’ Compensation and can cover all medical care related to an injury, such as surgeries, prescription medication, and physical therapies.
Contesting a Claim
If there is reason to contest a claim filed by a hedge fund employee in New York, a Workers’ Compensation carrier can do so by notifying the employee and the Board of Workers’ Compensation. The insurer handles this process completely, meaning the employer does not have to worry about navigating this somewhat awkward situation. If your hedge fund were to self-insure, it would have to deal with contesting claims and paying benefits out to injured workers itself.
Why Do Hedge Funds in New York Need Workers’ Compensation Coverage?
Despite not being accident-prone workplaces, hedge funds still typically need Workers’ Compensation in New York. If your company is required to have workplace liability insurance by law, as most are, and does not secure a policy, it could be fined by the New York State Workers’ Compensation Board. Furthermore, your hedge fund might become vulnerable to employee lawsuits.
Initial penalties for Workers’ Compensation non-compliance in New York begin at $2,000 for each ten-day period a hedge fund is without insurance. Before your company is fined, the Workers’ Compensation Board will mail an inquiry notice to the hedge fund, requiring it to send proof of coverage. Fines will be levied if your company does not send proof of coverage quickly enough. Financial penalties for non-compliance will continue to accrue for as long as a hedge fund does not get a Workers’ Compensation policy in New York. If there was a legitimate reason for your company’s lapse in coverage, you can request a review from the Workers’ Compensation Board to reduce your financial penalties. There are additional criminal penalties for Workers’ Compensation non-compliance. Such penalties can be imposed upon hedge funds, even if there has not been a recent workplace accident. So, do not assume that just because there is only a slight chance of an employee injury that your company cannot be penalized by the New York State Workers’ Compensation Board.
Potential for Lawsuits
Having workplace liability insurance is the only thing that protects hedge funds from injury lawsuits filed by employees. Workers’ Compensation does not offer recovery for non-economic damages in New York, but injury lawsuits do. This means that if a lawsuit is filed against a hedge fund, the company could be liable for substantial damages incurred by an employee. Such lawsuits can drag on for far too long and cause issues that would have otherwise been handled in a Workers’ Compensation claim. When workers can sue, they have much longer to recover compensation. Injury lawsuits have a statute of limitations of three years in New York, giving workers more time to consider their options, especially if their employers do not have Workers’ Compensation insurance. Litigation is not allowed when hedge funds have liability insurance.
Call Our New York Brokers to Get Workers’ Comp Coverage Today
Hedge funds can call our Workers’ Compensation insurance brokers at (866) 340-9120 to get help from NPN Brokers today.
"*" indicates required fields