Governor Hochul Announces $585 Million Boost to NY Small Businesses
Governor Kathy Hochul today announced the New York State Insurance Fund, New York State’s largest workers’ compensation insurer, allocated $585 million to New York employers last year through its dividends and return-of-premium programs. Every year, NYSIF returns funds to New York State businesses that prioritize worker safety protocols and exhibit strong safety records.
“Through efforts like NYSIF’s dividends and return-of-premium program, New York State is proving that safe, stable workplaces are not just good for workers – they’re also good for business,” Governor Hochul said. “New York’s small businesses are the engine behind our economy and our state’s largest employers, and my administration is proud to provide these much-needed savings to companies in every industry that are joining our mission to keep workers safe.”
The majority of the New York State Insurance Fund’s (NYSIF) policyholders are small- and mid-sized businesses in every region of New York State, many of whom have been with the company for decades. Companies either insure directly with NYSIF or belong to a NYSIF safety group where employers in the same industry can pool together to further reduce workers’ compensation expenses.
Gaurav Vasisht, Executive Director & CEO of NYSIF said, “We’re honored to pass these savings to employers as part of our mission to provide New York businesses with workers’ compensation coverage at the lowest possible cost. Thanks to Governor Hochul’s leadership and commitment to helping smaller businesses, NYSIF can deliver hundreds of millions in savings for employers.”
New York law requires businesses to secure workers’ compensation coverage, which is obtained through NYSIF, a private carrier, or by self-insuring. Unlike private carriers, NYSIF serves as a guaranteed source of coverage and must cover any employer that applies for coverage, regardless of risk and at the lowest possible cost to maintain a solvent fund. Providing dividends and return of premium to its policyholders is a key tenet of NYSIF’s role. NYSIF also provides disability insurance and paid family leave to New York businesses.
While the program is not guaranteed and dependent on various factors, including financial performance, NYSIF has returned more than $1 billion to many New York businesses insured through this program during the last two years.
New York State Workers' Compensation Board Chair Clarissa Rodriguez said, “We commend Governor Hochul and NYSIF for rewarding businesses that prioritize worker safety and reduce the need for workers' compensation benefits. As we all know, the best accident is the one that never happens.”
New York State AFL-CIO President Mario Cilento said, “Everyone wins when worker safety is the priority. Policyholders with a proven commitment to keeping their workers safe are rewarded through the NYSIF dividends and discounts announced by Governor Hochul. More importantly, workplace safety means working people benefit from improved conditions on the job. We applaud Governor Hochul, NYSIF, and the unionized workers at the agency for continuing to put safety first.”
The Business Council of New York State President and CEO Heather Mulligan said, "The Business Council of New York State appreciates the efforts of NYSIF to help New York's businesses struggling during a challenging economy, and as the state’s leading advocacy group we applaud the continuing efforts of employers who are keeping workers safe and reducing workplace injuries. We commend Governor Hochul for working to keep workers' compensation rates from increasing for all employers and her ongoing commitment to businesses."