General Workers’ Compensation Information
What is Workers’ Compensation Insurance?
Workers’ compensation insurance protects employers from liability for on-the-job injury or illness. It provides the following:
- Legal representation for the employer by the insurance carrier
- Protection for the employer against most lawsuits for on-the-job injuries/illnesses
- Payment of medical services needed to treat the job injury or illness
- Temporary payments to the employee to help replace lost wages
- Payments to the employee to compensate for permanent effects of an injury
- A death benefit for the employee’s survivors in the event of a fatal injury
Do farmers need workers’ compensation?
- Yes! Coverage is mandatory. All employers are required to provide workers’ compensation coverage for their employees, regardless of annual payroll.
- Important: Employers are required to post the mandatory workers’ compensation notice of compliance poster in both English and Spanish. Employers may get these posters from their insurance carrier, or, if self-insured, from the Workers’ Compensation Board by emailing certificates@wcb.ny.gov.
Do farmers need disability insurance?
Farm employers, owners and operators are required to provide disability benefits and New York Paid Family Leave coverage to eligible farm laborers. For more information, call our office at (800) 342-4143 or the Workers’ Compensation Board at (800) 628-3331.
Who is covered?
- All employees. It’s important to remember that if you provide housing, it is also considered payroll, and it is subject to premium charges.
- Volunteers, including friends and family members.
- Officers of a corporation who are legally considered employees of that corporation. Note: Corporations with one to two corporate officers owning 100% of the shares, with each officer owning at least one share, can elect to exclude one or both officers from coverage.
- Children over the age of 18 related to an owner.
- Anyone who does work for your business for any length of time, including self-employed subcontractors typically hired to do custom work. Note: If you hire an independent contractor, be sure to get a Certificate of Workers’ Compensation Insurance from them and keep it on file. Otherwise, you could be charged a premium for the contracted amount.
Who is not covered?
- Sole proprietors, partners and members of an LLC.
- Spouses and minor children under the age of 18.
Safety Group 486
Who is eligible to join Safety Group 486?
Any New York Farm Bureau member whose operation fits into one or more of the following categories (listed by code and classification) may join:
| Code | Classification |
|---|---|
| 0005 | Nurserymen and Sod Farmers |
| 0006 | NOC Farms and Drivers (includes livestock, crops and breeding) |
| 0007 | Fruit Farms and Drivers |
| 0031 | Vegetable, Berry or Grape and Drivers |
| 0034 | Poultry and Drivers; Apiary and Drivers |
| 0035 | Florists (Cultivating or Gardening) and Drivers |
| 0050 | Farm Machinery Contractors |
| 2014 | Feed Manufacturing or Grain Milling |
| 2070 | Creameries and Route Sales (Farm Payroll Required) |
| 2081 | Butchering or Slaughtering |
| 2089 | Packing Houses – All Operations |
| 2105 | Fruit Packing |
| 2121 | Breweries and Drivers (Farm Payroll Required) |
| 2143 | Fruit Juice Manufacturing or Winery |
| 2157 | NOC Bottling and Drivers (Distillery) (Farm Payroll Required) |
| 7201 | Livery/Boarding/Horse Show Stable and Drivers |
| 7207 | Riding Academies |
| 8102 | Seed Merchants |
| 8116 | Farm Machinery Dealers |
| 8199 | Feed or Farm Supply Dealer – Retail |
| 8209 | Vegetable Packing and Drivers |
| 8215 | Hay, Grain, Feed Dealers and Drivers |
| 8288 | Livestock Sales |
How much does it cost?
Call (800) 342-4143 or use the Get a Quote form.
Being a member of the New York Farm Bureau Safety Group 486 also means you may be eligible for a 25% upfront discount and an annual dividend. The dividend is a return of premium that is left over at the end of the year after paying the claims and losses for the group. Reserves are calculated, and members receive a check.
How much will my dividend check be?
Dividends, while not guaranteed, have averaged 42% over the past five years, based on group performance:
| Year | Dividends |
|---|---|
| 2020 | 40% |
| 2021 | 40% |
| 2022 | 40% |
| 2023 | 45% |
| 2024 | 45% |
Plus, each year, an additional 5% is added to the standard NYSIF upfront discount of 20%, maximizing the upfront discount to NYFB Safety Group 486 policyholders to 25%.
What is the group managers’ fee?
While New York Farm Bureau membership is a requirement of participation, Safety Group 486 is not supported by New York Farm Bureau membership dues. To cover administrative costs, a group managers’ fee is billed to policyholders of Safety Group 486 by New York Farm Bureau Member Services Inc. This fee is equal to 12% of the New York State Insurance Fund (NYSIF) Total Modified Premium.
- Group managers’ fees are billed twice yearly — once upon policy issuance or renewal and again when the audit or report for the prior year is completed.
- New policies are invoiced for the group managers’ fee from NY Farm Bureau Member Services Inc. when the declaration is issued. Because the policy is written from the effective date to the shared group anniversary date of 12/31, the initial group managers’ fee will be prorated or adjusted accordingly.
- All invoices are due upon receipt.
- Payment options are available at no additional charge. Contact the office at 1-800-342-4143 for details.
What service does the group managers’ fee cover?
- We pre-qualify each applicant to ensure that NYFB Safety Group 486 is the best choice for the member and that the member is a good financial risk for Safety Group 486.
- We manage the program. We have immediate access to all policy information and are available to answer all questions.
- Our licensed, professional staff has direct access to the New York State Insurance Fund (NYSIF), so we may view your policy activity at any time. We also have a direct line to NYSIF personnel.
- We handle all day-to-day operations of Safety Group 486, including oversight of claims and the financial well-being for the entire group.
- We represent the interests of the policyholder with NYSIF. We review individual policyholder claims, loss of discounts, or potential removal from the group for various reasons.
- We ensure that all participants in Safety Group 486 are active NYFB members and are eligible for the group.
How do I get a policy started?
If you are not currently with the New York State Insurance Fund:
- Call (800) 342-4143 for a premium quote or click on Get a Quote and complete the form.
- A quote and application packet will be emailed to you, if you eligible are eligible to join Safety Group 486.
- Download and complete the NYSIF Workers’ Compensation application, NYFB Group Authorization, NYFB Memorandum of Understanding and NYFB Voting Proxy. Or, you may submit an electronic application through the NYFB office. Signature and payment must be made electronically.
- Applications must be postmarked before the desired effective date of coverage.
- Send the complete application packet and premium deposit check (made payable to New York State Insurance Fund) to: New York Farm Bureau, Member Services Inc., 159 Wolf Road, Suite 300, Albany NY 12205-0330
Note: New York Farm Bureau Member Services Inc. cannot bind coverage.
How will I be billed?
A policy is first billed using the estimated payroll figures given by the client on the original application. The annual premium payment plan is calculated in one of four ways, as shown below.
| Annual Premium | Payment Plan |
|---|---|
| Less than $1,000 | 100% due upon renewal |
| $1,000 to $10,000 | 25% due upon renewal; 9 monthly installments |
| Over $10,000 (option 1) | 25% due upon renewal; 9 monthly installments |
| Over $10,000 (option 2) | 12 equal monthly installments |
New York State Insurance Fund (NYSIF) charges a $5 service fee for any debit balance each month. If the policy carries a credit balance, the service charge will not be applied.
The group managers’ fee is billed separately by New York Farm Bureau Member Services Inc. after the policy is issued. The group managers’ fee is typically billed upon annual renewal and adjusted by an audit.
When do I pay?
The policy period for Safety Group 486 runs from December 31 to December 31. Renewals are issued approximately 45 days in advance. The initial payment should be made prior to January 1 for the coming year. During the months of January, February and March, the New York State Insurance Fund (NYSIF) will mail policyholders payroll reports or schedule audit appointments. This is when the actual payroll for the prior year is recorded and the account is then adjusted. If the payroll was higher than estimated, an additional premium could be due. If the payroll was lower than estimated, then there may be a credit.
Is an audit required?
All first-year policies are subject to a physical audit to verify payroll amounts and proper classification of the policy. Policies with an annual premium over $10,000 are subject to an annual audit. All others could be physically audited every three years.
It is very important that the payroll information is reported accurately and on time. Failure to have an audit or failure to return a payroll report may result in an increase in premium, the loss of the upfront discount and possible delay of the dividend return.
What are my payment options?
Pay and manage your bills online: To pay online, you must first register for an account with NYSIF. Visit www.nysif.com to get started.
- Log in to make a payment. You can also enroll in AutoPay (master account holders only), view bills, save a payment method to your wallet and more.
- Click here to make a payment without logging in. You’ll need your policy number and your zip code.
NYSIF will waive the credit card fee for paperless statements. See NYSIF website for eligibility requirements.
Pay by phone: Call (833) 844-4704
Pay by mail: Send your payment using the return envelope included in your bill to: NYSIF Workers’ Compensation, P.O. Box 5519, Binghamton, NY 13902-5519 OR NYSIF Disability Benefits, P.O. Box 5520, Binghamton, NY 13902-5520.
Pay by mail (new business deposits only): Send your completed and signed application, along with the required deposit and supporting documentation, to: NYSIF New Business, P.O. Box 66699, Albany, NY 12206.
Pay-As-You-Go Premiums: NYSIF PayGo aligns workers’ comp premiums to payroll each pay period. As payroll changes, so does your premium, in a practical pay-as-you-go solution. Premiums are based on payroll in real time, ensuing a direct connection to current business conditions all the time.
What are the advantages of PayGo?
- $0 upfront deposit – No upfront premium deposit needed to initiate coverage.
- Maximize cash flow – Premium payments are better connected to your cash flow.
- Meet payment deadlines – Reduces the possibility of missed payment deadlines.
- Eliminate the need for an estimated audit – Lower your risk for additional premium charges at audit.
- Benefits for Seasonal Business – If payroll changes depending on the season, so should workers’ comp premiums. PayGo calculates premium payments that keep pace with the month-to-month flows of seasonal business.
- QuickBooks® Integration – PayGo can be directly integrated with QuickBooks® for even greater convenience. This helpful option enhances the cash flow advantages of using PayGo.
For more information, call our office at (800) 342-4143 or email wcinfo@nyfb.org.
