The New York State Department of Insurance is cracking down on a practice they consider very common among companies in New York, specifically contractors, known as Employee Misclassification.

In the construction and mechanical industries workers compensation insurance (workers comp) can be a severe expense.

The three critical benefits of workers comp include: First, the employer gets tort relief. Second the employee gets a relatively quick, equitable, and predictable no-fault compensation scheme. Finally, the system carries an intrinsic incentive toward rehabilitation of the injured worker.

According to the National Council of Compensation Insurance (www.ncci.com) claims involving obesity have a “markedly higher” indemity and medical costs.

I am often approached by business owners throughout the Capital Region for advice on how to ease the cost of workers compensation (WC) insurance, particularly in this economic downturn. My advice is always the same; the best way to save is by taking the time to set up a proper workers compensation program which will protect the business’s solvency in the event of an accident.