Devoted to the Insurance industry and all thing related

The current New York business environment for many small businesses has been less than stellar when it comes to dealing with workers compensation insurance.  According to nationalunderwriter.com New York Governor Elliot Spitzer announced an agreement today, “between the legislative and executive branches to reform the state’s system that would increase benefits for injured workers over a four-year period” and “at the same time, employers’ costs would be cut 10-to-15 percent and more over time.”  

I was not aware that the workers comp industry in New York was such an issue for small businesses.  However, reading some of the improvements to the system opened my eyes to how necessary the changes were.  Here are some of the more pertinent changes:

The maximum weekly benefit for injured workers will be increased from $400 to $500 in the first year, $550 in the second year, $600 in the third year, and to two-thirds of the average weekly wage in New York in the fourth year. Once the maximum benefit reaches two-thirds of the average weekly wage, the maximum benefit will be indexed annually.

 

The minimum weekly benefit will be increased from $40 to $100.

Cost savings worth hundreds of millions of dollars will be achieved by setting maximum number of years that a small population of claimants can receive cash benefits. Medical services will continue, however, and a safety net will be established to help these workers return to gainful employment and to intervene in cases of extreme hardship.   

The Second Injury Fund--established to help injured World War II veterans--will be closed. Some carriers have used it to avoid paying claims.

Does anyone know what the average weekly wage is in New York?