New Jersey workers who are injured in NY need not fear a denial of their claims—at least, not because their employer failed to pay into an adequate insurance plan.
One January 20, Governor Andrew Cuomo announced that the state Workers’ Compensation Board will purchase insurance to pay claims of injured workers whose businesses self-insured trusts had failed. As part of the 2013 Business Relief Act, the state will allocate $370 million in bonds to assist injured workers.
“Employees who are hurt on the job are rightfully entitled to their workers’ compensation benefits, and the bonds issued by the State will provide financial assistance for employers to meet those needs.” Governor Cuomo said.
The New York State Workers’ Compensation Board will purchase insurance policies using the bonds that will pay out comp claims in businesses which had insufficient funds to cover injuries. The insolvent trusts will reimburse the Board for the cost of the policies over 10 years at low interest rates.
The Business Relief Act has authorized up to $900M in bonding capacity to cover defaulted group trusts, including the Healthcare Industry Trust of New York and the Healthcare Providers Self Insurance Trust.
The goal is for the bond to provide immediate relief to businesses and injured workers, but also to prevent a similar situation from occurring in the future. The transfer of the claims to insurance companies provides timely payment of injury benefits, while assumption of liability insurance will cap the cost of injury claims for employers at a favorable rate.
Will the Business Relief Act affect your workers’ compensation case? Call Manfred F. Ricciardelli, Jr. at 877-360-0183 today to find out if workers injured in NY can benefit from filing multiple claims.