DeWITT, N.Y. — A new law that protects employers from “surprise” increases in their workers’- compensation (workers’ comp) insurance costs took effect on Tuesday.
Big I New York, which describes itself as the Empire State’s “oldest” insurance producer trade association, on Monday issued a news release to remind employers, insurance companies, agents, and brokers about the new law.
Big I New York is the rebranded name of the former Independent Insurance Agents & Brokers of New York, Inc. (IIABNY). It is headquartered in DeWitt.
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The trade association says it helped develop the law to “protect” the state’s employers from unexpected cost increases.
Previously, businesses often learned of large workers’-compensation premium increases “days” before their policies were to renew. It left them “little time” to work with their agents to seek less-expensive options.
The new law requires insurance companies to give businesses written notice when their workers’-comp policy premiums will rise more than 10 percent upon renewal by an affiliated insurer. They must send the notice at least 30 days before the existing policies expire.
The requirement applies only to premium components within the insurer’s control. Insurers will not have to send a notice when the increase results from changes in factors that are related to the risk, such as an increase in the business’s payroll or surcharges or discounts based on the business’s loss history.
The new law applies to all workers’-compensation insurance policies issued or renewed in New York on or after April 17, 2018, Big I New York said.
When Gov. Andrew Cuomo signed the measure into law last December, he asked the state legislature to make technical changes to it, the trade group said. Lawmakers completed work on a bill to make those changes earlier this year and sent it to the governor for his approval on April 6.
Big I New York says it represents more than 1,750 agencies and their more than 13,000 employees. Big I’s members are independent insurance agents and brokers.
Contact Reinhardt at ereinhardt@cnybj.com
