Understanding NYS Workers Compensation Insurance Codes for Restaurant and Hospitality Workers

Many owners and managers of restaurants, bakeries, hotels, motels, and country clubs focus on food and service and shy away from logistics. If you own or run a business in the hospitality industry in New York State you probably already know that the paper work never ends and cannot be ignored. NYS requires all businesses with one employee or more to purchase workers compensation insurance.The insurance can be purchased through the NYSIF (New York State Insurance Fund), publicly traded or mutual insurance. Businesses can also have self-coverage or be part of a self-coverage group, however the rules and regulations are very stringent. When seeking coverage, each business must assign each worker a code number which are created by the New York Compensation Insurance Rating Board, NYCIRB. The codes are listed in a 35 page document that lists hundreds of codes. Each code assigns a number that evaluates the level of risk for any given job. The workers compensation insurance premiums are determined by these codes.Proper workers compensation coverage is essential, especially in the hospitably industry. Work place accidents happen and the state law protects businesses from civil lawsuits and pays for 100% of an injured workers medical expenses and a portion of their salary. Businesses that do not have coverage or insufficient coverage can face penalties and fines. However filing the wrong codes or over paying because of incorrect code usage does not offer better coverage.It's important to take the time properly assign codes to all workers before the end of a given time period ends and the mandatory audit begins. The auditor will assign the highest code that applies to each worker, however if a worker did different types of work during the set period, he or she will probably be covered under several different codes. Careful book keeping and organized paper work will result in the most positive results regarding premium pricing. I began this article stating that many restaurant and hotel owners would prefer to focus on food and service, not codes and regulations. Now there are experts that assist businesses in New York, New Jersey, and Connecticut with all the workers compensation regulations. Remember, the NYSIF is not going to take time to search for codes to help you get the best rates. Many businesses overpay for their worker comp coverage. This affects the bottom line. Make sure to take time to learn the procedures so your business will get the best coverage for the fairest rates.