Sadly in New York the largest Workers Compensation provider for contractors is the New York State Insurance Fund aka NYSIF.
NYSIF has earned a reputation for being extremely tough on contractors. Some contractors even feel that NYSIF is out to get them or intentionally charge them additional premium.
However, NYSIF is just trying to do their job and provide coverage to meet the needs of New York’s many contractors since very few private carriers are willing to offer coverage.
NYSIF has not done much to dispel the rumors that they are tough to deal with, though. They required mailed in applications with original wet signatures up until very recently.
They send out bills that require a PHD in mathematics to understand. They have the most comprehensive audit requirements. (Basically, they want everything imaginable to review come audit time)
So, who is NYSIF?
NYSIF is technically a private company founded in 1914 as part of law requiring employers in New York to provide coverage. NYSIF was tasked with providing low cost coverage to any business in New York.
NYSIF competes with all private carriers in the state but specifically for contractors, it’s a small crowd of competitors.
NYSIF is the largest provider of workers’ compensation in the entire state of New York not just for contractors.
NYSIF isn’t all bad. While they can be strict with the underwriting and digging up any sins from the past — aka premiums “owed” on some previous entity or business from 20 years ago.
The rates they charge and discounts they give can make them the most competitive carrier in the state.
Additionally, because they are required to offer coverage to any employer, they can provide coverage for your tough loss history or high-risk classification.
The key thing to keep in mind for any contractor in New York is at some point you will end up needing a policy from NYSIF. If you are fortunate to have found workers’ compensation outside of NYSIF it won’t last forever.
At some point your business will likely be canceled or non-renewed and have no options left but NYSIF.
Getting workers’ compensation with NYSIF isn’t the end of the world. It’s often less expensive than private carriers. But be prepared to tighten up your documentation, audit time will require additional effort.
Bottom Line
NYSIF is a necessity for New York contractors. In fact, it is our most frequently used workers’ compensation carrier. We do our best to help guide you and navigate the process to make your dealings with NYSIF as painless as possible.
