Yes, you can qualify for workers’ comp if you’re self-employed in New York. Self-employed individuals can purchase workers’ compensation coverage voluntarily, ensuring financial protection if they suffer a work-related injury or illness.
Understanding how these laws apply to you is crucial, as New York mandates workers’ compensation insurance in certain situations, even for self-employed professionals. A New York workers’ compensation lawyer can help you understand the legal issues and guidelines around this type of insurance as well.
Challenges Getting Workers’ Comp Benefits for Self-Employed Individuals in New York
Workers’ compensation offers essential protection for injuries and illnesses that may occur during your work. Coverage includes benefits for medical care and lost wages. If someone passes away because of a work injury, it also gives death benefits to surviving loved ones.
Navigating workers’ compensation laws in New York can be challenging, especially for self-employed individuals. While traditional employees are covered by their employers, self-employed workers, including freelancers, independent contractors, and small business owners, must take extra steps to access these benefits.
Below, we’ll take you through some specific challenges when suffering a work-related illness or injury as a self-employed worker.
No Automatic Coverage
New York’s workers’ compensation system does not automatically cover self-employed workers. Without an employer to provide coverage, self-employed individuals are responsible for securing their policy.
Misconceptions About Coverage
Many self-employed individuals mistakenly believe they are covered under general liability insurance or through their clients’ workers’ comp policies. However, this is not the case unless explicitly stated in a contract.
Increased Financial Risk
Without coverage, self-employed individuals risk shouldering all medical expenses and lost income if injured on the job. To mitigate this, New York allows self-employed workers to voluntarily purchase workers’ compensation insurance to protect themselves and their businesses. However, this is an additional cost that can be difficult for some to afford.
Not Understanding Legal Requirements for Coverage
In New York, self-employed individuals are generally not required to carry workers’ compensation insurance unless they have employees. However, if you hire subcontractors or other workers, you are legally obligated to provide coverage for them. Understanding what coverage laws apply to you and your business is essential.
Specific industries, like construction, may have stricter requirements for subcontractors to maintain coverage. Failing to carry required insurance can result in severe penalties, including fines and business closures. To ensure compliance and avoid liabilities, self-employed individuals should carefully assess their business structure and legal obligations under New York’s Workers’ Compensation Law.
Our attorneys can help you with any complications you are facing as a self-employed person seeking workers’ comp benefits.
Options for Self-Employed Workers in New York
If you are self-employed, there may be a few workers’ compensation insurance options depending on your unique situation.
Voluntary Workers’ Compensation Insurance
Self-employed individuals in New York can purchase workers’ compensation insurance voluntarily. This option provides financial protection for work-related injuries or illnesses, covering medical expenses and lost wages.
Policies can be obtained through private insurance companies or the New York State Insurance Fund (NYSIF), a state-operated insurer offering competitive rates.
Coverage for Partnerships or Businesses with Employees
As explained previously, even if you are self-employed, if you hire employees or work in a partnership, New York law requires you to carry workers’ compensation insurance for your employees.
Having coverage ensures compliance and protects your business from penalties. It also ensures you have the protection you need for any injuries you sustain on the job.
Subcontractors
Subcontractors may sometimes fall under the workers’ compensation policy of the hiring contractor, depending on the agreement. It’s essential to confirm coverage terms in advance to avoid unexpected gaps.
Steps to Obtain Workers’ Comp Benefits as a Self-Employed Worker in New York
If you purchased workers’ compensation insurance and suffer an injury or illness, you will need to know how to obtain your benefits. Below, we’ll go through the steps to do so.
What You Need to Do:
Your first step is reporting the injury or illness to your workers’ compensation insurance provider. The sooner you do so, the better.
Ensure that, except for emergency medical services, you seek medical care from an authorized provider.
Keep receipts if you pay any bills related to your injury or illness.
What the Insurer Will Do:
Within either 14 days of your claim being submitted or included alongside your first benefits check, the insurer must acknowledge receipt of your claim and provide you with a written statement of your rights.
The insurer may investigate your workers’ compensation claim to ensure your claim is not fraudulent.
If the insurer deems your claim is valid, in most cases, it will begin paying out benefits. Typically, you will receive benefit payments every two weeks.
To contest your claim, the insurer must notify you that it is doing so. This notice must contain the reason for not paying out your claim.
Your workers’ comp lawyer can appeal this decision.
What Happens After an Injury If You don’t Have Workers’ Compensation Insurance and Are Self-Employed?
Without workers’ compensation coverage, you may need to explore alternative options, such as third-party liability claims or other insurance policies. Navigating this process can be complex.
Why don’t you?Free Case Consultation
How Can I Afford Help from a Lawyer?
We know that the time after an on-the-job injury can be scary and stressful, especially if you aren’t sure if you have benefits to cover you. This is why our team handles cases on a contingency fee basis. You don’t pay anything to get started. In fact, our fee is only deducted from the benefits you receive, never from your own pocket.
Learn More About Qualifying for Workers’ Compensation If You’re Self-Employed in New York
At O’Connor Law, we have a 10/10 AVVO rating for our work helping injured workers throughout New York. Contact us today to discuss your options. The case review is free.
