Why New York Contractors Working in New Jersey Need Proper Workers’ Compensation Coverage

Tri-State Contractors?– Looking for a New General Liability, Umbrella Liability, or Workers’ Compensation Policy? We Offer Great Options for New York, New Jersey, and Connecticut Contractors! Being Canceled Due To Losses? Not Happy with Your Coverages or Rates? Unhappy with Your Broker’s Service? Company No Longer Providing Coverage in Your State? In The Middle of an Audit Dispute? Whatever Your Issue, We Can Help.??Gary Wallach at 914-806-5853 or Email?[email protected]?Today!?

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As a New York contractor, you may take on projects that extend beyond state lines, including neighboring New Jersey. When you accept such jobs, it’s important to be aware of the legal and financial obligations regarding workers’ compensation insurance. Many contractors mistakenly assume that their New York workers’ compensation policy will cover their employees no matter where they work. However, this is not the case. Failure to secure proper coverage in New Jersey could leave you exposed to significant financial risk.

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New York State Fund: Coverage Limits and Liabilities?

If you’re insured through the New York State Insurance Fund (NYSIF) or any other New York workers’ compensation provider, your policy strictly adheres to New York State law. This means that benefits for any work-related injury are only payable according to New York’s laws, and they may not extend to cover claims arising from incidents that occur out of state.?

For instance, if one of your employees is injured while working on a New Jersey project and they decide to receive treatment or file a workers’ compensation claim in New Jersey, your New York coverage will likely not apply. The subcontractor would then be financially responsible for the difference between what the New York policy would cover and what New Jersey’s workers’ compensation laws require. This gap could lead to out-of-pocket expenses or potential lawsuits from the injured employee.

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Why New Jersey-Specific Workers’ Compensation Coverage is Essential?

If you’re a subcontractor taking on a job in New Jersey that lasts several months or more, you must purchase a separate workers’ compensation policy that covers the state of New Jersey. New Jersey’s workers’ compensation laws may differ in terms of benefit levels and types of compensable injuries, and having the wrong coverage could leave you vulnerable.?

For example, if one of your employees is injured on the job in New Jersey, they might opt to receive care and file their workers’ comp claim within that state’s system. If your policy doesn’t include New Jersey coverage, your insurance won’t pay the claim, and you could be held personally responsible for medical bills, lost wages, and other damages that New Jersey law mandates.

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General Contractors’ Workers’ Comp Audits and the Risks for Subcontractors?

When you’re hired as a subcontractor, the general contractor (GC) often has their own workers’ compensation policy that will be subject to an annual audit. During this audit, the GC’s insurance carrier reviews all aspects of their payroll, including the payrolls of any subcontractors who worked on their projects.?

If the subcontractor does not have the correct workers’ compensation coverage—such as not having coverage for the state of New Jersey—the GC’s policy may have to pick up the slack. The GC’s workers’ compensation carrier will then be forced to account for the subcontractor’s payroll in their audit and include it under the GC’s policy. This can lead to significant premium increases for the GC, who may, in turn, hold the subcontractor financially responsible for the additional costs.?

Additionally, failing to have the proper workers’ comp coverage could damage your relationship with the GC, potentially costing you future work opportunities. General contractors want to work with subcontractors who have the right coverage in place to avoid audit issues and the risk of increased premiums.

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Avoid Financial Pitfalls: Ensure the Right Coverage?

To protect yourself from these financial pitfalls, it’s critical to assess your workers’ compensation insurance needs whenever you take on a project outside of New York. In the case of working in New Jersey, ensure that your workers’ compensation policy explicitly covers the state. This may involve purchasing an endorsement or a separate policy that includes New Jersey.

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Here’s what you need to keep in mind:?

????? 1.?????? Check your coverage limits: Make sure your current workers’ comp policy covers any state you are working in. Most New York policies do not automatically cover out-of-state work.

????? 2.?????? Secure state-specific policies: If your project is in New Jersey or another state, obtain a workers’ comp policy specific to that jurisdiction.

????? 3.?????? Avoid GC audit headaches: If you work as a subcontractor, having the correct coverage helps avoid costly audits and keeps you in good standing with the general contractors you work with.

????? 4.?????? Financial responsibility for injuries: Without proper coverage, you may be personally liable for an injured worker’s benefits, which could result in substantial financial losses.

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Conclusion: Partner with Experts for Proper Coverage?

As a contractor working across state lines, ensuring you have the correct workers’ compensation coverage is crucial to protecting your business. The financial risks of not being properly insured—such as being held liable for injuries or causing a general contractor’s premiums to skyrocket—are simply too great.?

For New York contractors who frequently take on work in other states, BGES Group can help. As experts in workers’ compensation insurance, we can assist in finding the right policy to ensure you’re fully protected whether you’re working in New York, New Jersey, or anywhere else. Don’t let improper coverage put your business at risk. Contact Gary Wallach at 914-806-5853 or email?[email protected]?today to secure the workers’ compensation coverage you need for your next out-of-state project.?

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BGES Group is one of New York, New Jersey, and Connecticut's Construction Insurance Specialists representing 50+ companies, including all the BEST general & umbrella liability programs. We offer all the coverage needed, including property, builders' risk, inland marine, general liability, umbrella liability, auto, bid & performance bonds, workers' compensation, N.Y.S. disability, and group health.? Our commitment to you goes?beyond?the policies we?provide. We are always just a call, text, or email away, ready to assist you, even?on?weekends. We understand the importance of your business and are here to help?you navigate any insurance challenges.?

BGES Group are?Workers' Compensation Insurance Specialists for Tri-State Business Owners: Unhappy with your rates, company, being canceled, losses causing difficulty getting coverage, in the middle of an audit dispute, misclassified payrolls, or?whatever your issue. We can help!? We have special programs for Auto Services, Contractors (especially in New York), Limousine Services, Logistics Companies, Manufacturers, Recyclers, and?Truckers; we can help ANY tri-state business owner. We are considered "Preferred Agents" for this one program that, if we can get you into, their pricing is excellent, offers long-term coverage stability, and can cover multi-state operations. The program takes the hassle out of doing annual audits, too.?

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If you want to speak with us, call Gary Wallach at 914-806-5853, click?here to email, or visit our website.

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Company: BGES Group, 216A Larchmont Acres West, Larchmont, NY?10538

email:?[email protected]

website: https://www.bgesgroup.com

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