The New York State Insurance Fund is an NYS government-run insurance carrier that competes with private insurance carriers in Worker’s Compensation and Short-term Disability policies.
While in some states, their “State Insurance Fund” is a market of last resort, this is not always the case with the New York State Insurance Fund (NYSIF).
NYSIF is a well-run organization providing a fine product that is, on occasion, the preferred worker’s compensation product for a business.
Here’s what you need to know about NYSIF before your purchase…
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What is the New York State Insurance Fund?
If you are considering the New York State Insurance Fund, you have no reason to be concerned. They have a lot of good people that work there, and truthfully, over the last ten years, they have taken the organization from being very difficult to deal with and made some drastic improvements.
Now, I won’t say that the NY State Fund is perfect or even that the NYSIF is the best option (if another option is available). As a last resort market, I think NYSIF is a quality worker’s compensation provider knowing how other states’ government-run insurance carriers operate.
This is from the New Your State Insurance Fund website:
“The New York State Insurance Fund (NYSIF) was established in 1914 as part of the original enactment of the New York State Workers’ Compensation Law. NYSIF’s mission is to guarantee the availability of workers’ compensation insurance at the lowest possible cost to New York employers and to provide timely, appropriate indemnity and medical payments to injured workers, while maintaining a solvent fund. Since inception, NYSIF has fulfilled the dual roles for which it was created: to compete with other carriers to ensure a fair marketplace and to be a guaranteed source of coverage for employers who cannot secure coverage elsewhere.
- Achieve the best health outcomes for injured workers by paying indemnity and medical benefits promptly, and facilitating appropriate medical care.
- Ensure that all New York businesses have a market for workers’ compensation and disability benefits insurance at a fair price.
- Maintain a solvent state insurance fund that is always available to New York businesses.
- Be a competitive force in the marketplace and an industry leader in price, quality, and service.
NYSIF consists of two separate “funds” — the Workers’ Compensation Fund, insuring employers against occupational injury and disease suffered by their employees, and the Disability Benefits Fund, established in 1949, which insures against disabling off-the-job sickness or injury sustained by employees.”
You can read the entire NYSIF mission statement here.
Should You Use the New York State Insurance Fund?
If you have another option, be it one of the 5 best worker’s comp insurance carriers or another quality carrier in New York State, worker’s compensation offered by private-run carriers is often the better option.
One of the big advantages to private insurance carriers is the Pay-as-you-go worker’s comp option.
Another advantage to private worker’s comp carriers is the number of discounts your business can qualify for either in your first year working with them, or when you go to renew the second year with that carrier, you can submit documentation, manuals, processes, and apply for significant discounts to the policy.
Lastly, most NYSIF insurance policies are purchased by the business owner. This means no independent insurance agent is involved in the purchasing process to assist in setting the policy up properly and keeping your premiums as low as possible.
Many business owners mistakenly believe using an insurance agent increases costs; this is not the case with insurance.
Here’s a short story about Do-it-Yourself Worker’s Comp Gone Wrong.
There are many NY business owners for which the New York State Insurance Fund is the only option. If this is the case for you, do not worry.
However, if a private option for worker’s compensation insurance is available to you, I would always recommend exploring that option first.
Workers’ compensation is what we do here at Rogue Risk.
If you need help or just a little guidance, I encourage you to contact us today.
- You can call or text us at 518.960.6600.
- Click here to contact us via email.
I look forward to introducing you to a new viewing of your insurance program.