There are three options by which employers may obtain insurance policies.
Insurance Carrier
Policies can be purchased through a private insurance carrier authorized by the New York State Department of Financial Services. These insurance carriers may specialize in certain markets and offer various incentives to policyholders.
New York State Insurance Fund (NYSIF)
Policies may also be purchased through NYSIF, a public insurance carrier. NYSIF is a not-for-profit agency of the State of New York that offers workers' compensation, disability benefits and Paid Family Leave insurance. It is a separate and distinct entity from the New York State Workers' Compensation Board.
NYSIF must provide insurance to any employer seeking coverage, regardless of the employer's type of business, safety record or size. However, if an employer owes NYSIF money from a previous bill or account, coverage can be denied.
Self-Insurance
Employers may apply to provide workers' compensation, disability, and Paid Family Leave benefit coverage to their employees through self-insurance. If qualified to self-insure, employers agree to make benefit payments, meet all obligations under workers’ compensation laws, rules and regulations, and must maintain an adequate security deposit in the event of a default.
Disability and Paid Family Leave Benefit Plans
Employers may provide disability and Paid Family Leave benefits to their eligible employees under a Board-approved plan. All plans must be accepted by the Board and must adhere to the statutory requirements of the New York State Disability and Paid Family Leave Law (WCL Section 211). Once a plan has been accepted by the Board, the employer(s) must provide administration of these benefits from a licensed, New York State insurance carrier, or by obtaining the Board’s approval to administer benefits as a self-insured employer.