As a business owner in New York, you face decisions about insurance coverage daily. One question that often creates confusion: must you include yourself on your workers compensation policy? The answer varies based on your business structure and the type of work you perform day-to-day.
At the Horan insurance agency, we provide information to business owners throughout Central New York about workers compensation coverage options. We aim to share insights about the potential implications of including or excluding yourself from your policy and the factors that may affect premium costs.
In this article, we'll explore available options as a business owner and considerations that might influence your insurance decisions.
Business Owners Have Options for Workers Comp Coverage
In New York State, business owners generally can exclude themselves from their workers compensation policy. This creates flexibility when structuring your business insurance approach.
When you own a business, workers compensation coverage for yourself typically becomes optional in many situations. You may have the ability to decide whether your policy includes personal coverage or focuses solely on your employees. This may allow you to align your insurance approach with your specific situation and budget considerations.
How Job Activities May Influence Workers Comp Premiums
If you choose to include yourself on your workers compensation policy, the way you spend most of your workday could influence your premium costs. Insurance companies often rate individuals based on their primary job function—not simply as a business owner.
For example, if you own a carpet installation company in Rome, New York, but spend most days installing carpet alongside your team, you might be rated as a carpet installer rather than as an executive. This classification could result in different premiums since physical labor classifications typically carry different risk factors than administrative roles.
If your daily responsibilities involve mainly office work such as hiring, firing, and administrative management, you might receive an executive classification with potentially different premium rates. The cost difference between these classifications can be notable.
Considerations When Deciding About Owner Coverage
When evaluating whether to include or exclude yourself from your workers compensation policy, you might consider these measures:
- Review your daily activities - Track how you spend your working hours to understand your potential classification
- Learn about premium differences - Physical labor classifications often have different costs than executive classifications
- Evaluate personal health insurance - Verify you have health coverage if you exclude yourself from workers comp
- Consider risk factors - Think about your comfort level with potential out-of-pocket costs for work-related injuries
Business owners who primarily perform physical work may face different considerations since their inclusion could affect their workers compensation premium. The type of work activities you typically perform may influence premium calculations.
Understanding Workers Comp Considerations in New York
Your approach to workers compensation coverage may align with your overall business insurance strategy. Both short-term premium costs and long-term financial planning might factor into your choices.
In New York State, business owners may have options when structuring their workers compensation coverage. You might be able to exclude yourself while maintaining coverage for your employees. If you choose to include yourself, understanding how your job responsibilities might affect classification could be helpful.
The Horan insurance agency works with Central New York business owners seeking information about workers compensation options. We can discuss various aspects of including or excluding yourself from coverage and how different classifications might relate to premiums.
Click the Get a Quote button below to learn more about workers compensation options as a New York business owner.
If you're a sole proprietor with no employees, you might wonder if you need workers comp coverage at all. Check out our companion article: Do I Need Workers Comp Insurance If I Have No Employees? to learn how contractual requirements might still necessitate coverage even for solo business owners.
