A quick reference for terms specific to workers compensation in New York. For terms that apply across every kind of policy, see our General Terms glossary, or the full Insurance Terms index.
Average Weekly Wage
The number used to calculate an injured employee’s wage replacement benefits, based on their earnings before the injury.
Class Code
A code assigned to each type of work your business does, used to calculate your workers compensation premium. Different jobs carry different levels of risk, so they’re priced differently.
Employer’s Liability
Coverage that protects your business if an injured employee sues you directly, outside of the standard workers compensation claim process.
Experience Modification Factor (Mod)
A number that compares your business’s claims history to other businesses doing similar work. A mod above 1.0 increases your premium, and a mod below 1.0 decreases it.
Independent Contractor
A worker who isn’t your employee and typically carries their own insurance. Misclassifying an employee as an independent contractor can create real gaps in coverage.
Payroll Audit
A yearly review of your actual payroll, compared to the estimate used to set your premium. This can result in a refund or an additional bill, depending on whether your actual payroll came in higher or lower than estimated.
Sole Proprietor / Officer Exclusion
In New York, business owners and corporate officers can often exclude themselves from workers compensation coverage, which lowers the premium but also means they aren’t covered if they’re hurt on the job.
Statutory Limits
The benefit amounts required by New York law, set by the state rather than negotiated in the policy.
Temporary Disability
Benefits paid while an injured employee is unable to work but is expected to recover.
Waiting Period
The number of days an employee must be out of work before wage replacement benefits begin.
Workers Compensation Coverage required in New York for most employers, providing medical care and wage replacement to employees injured on the job, regardless of who was at fault.