The New York State Disability Benefits Law (DBL) mandates every “covered” employer (employers with one or more employees) to provide private disability insurance in New York to employees who are ill, injured off-job, or pregnant. To stay in compliance with the law, the employer can purchase private disability benefits insurance in New York either from an authorized insurance carrier or through the New York State Insurance Fund (NYSIF).
Many employers don’t know of the tremendous advantages of bundling an enriched DBL policy with other, highly desirable ancillary benefits in New York State. As successful insurance brokers who emphasize customer service, it’s important for you to remind them of the top reasons they should privatize DBL in NYS.
You know from shopping policies with The DBL Center for years that your customers can save money, get better coverage, and enjoy the white glove service you provide as a broker with The DBL Center as your back-office staff. Enriched DBL especially benefits the high earners in a company, since they are getting more bang for the buck with the benefit. The extra cash may help keep them from tapping into investments like stocks (no one wants to sell when the stock market is low!) or borrowing against their 401K. Keep that money in savings where it’s earning passive income for the future and use the benefits you’ve been paying for anyway.
Enriched DBL enables employers and employees, alike, to receive a weekly maximum benefit of up to $850, with optional in-hospital coverage available through select carriers.
But the income protection isn’t the only reason New York State employers should consider enriching DBL today.
Many employers today realize that highly capable workers want intangible benefits like flexible hours, telecommuting options and – above all else – a clear direction of their job expectations with guidance from their supervisors.
But when it comes to benefits, employers might be surprised to realize that traditional – and practical – benefits win out over other employee perks. In a study done by staffing agency Robert Half, employees listed paid time off, dental insurance, and vision insurance as three of the top five benefits they’d prefer. The state of New York recently forced employers’ hands with mandated New York State Sick Leave.
To stand out in a competitive market, you need to be able to offer ancillary benefits like vision and dental at a reasonable cost. According to the survey, 71% of employers offered dental insurance while 63% provided vision coverage.
When employers write NY Disability Benefits insurance through a private insurance carrier, they can bundle ancillary benefits at a low cost. Plus, these insurance options can be voluntary and employee-funded, costing the employer absolutely nothing out-of-pocket. Consider hosting a webinar to get in front of employees or the HR team and explain how much they can save with enriched DBL and ancillary benefits from your insurance agency and you’ll make friends for life.
After all, who wouldn’t want to save money on their insurance and necessities like dental care and eyeglasses?
Are you new to DBL Center? DBL Center works for its clients by offering quality assistance on the best NY State Disability Insurance Benefit packages and providing top-notch white-glove service.
With our instant, binding application, we help you prepare quotes from multiple carriers in a matter of minutes. Compare rates, diversify your portfolio, and earn more commission while DBL Center serves as your back-office support staff to manage and maintain your policies.
Plus, you’ll gain access to our state of the art Broker Dashboard to track your cancellations, upcoming renewals and commission.
by Michael Cohen
We’re living in unprecedented times and federal, state, and local governments are looking for ways to adapt. Seeking a balance between regulations and budget, legislation has sought to help Americans keep their businesses open and their employees paid through the vast challenges 2020 has brought us.
Most business owners in New York, along with insurance brokers and other professionals, have concerns about keeping our economy going. Increasing NY disability insurance rates for statutory DBL coverage might be the last thing on people’s minds. But it’s something those of us in the insurance industry should be thinking about.
NY State Disability Insurance benefits, or DBL, has not increased in decades. With a maximum payout of $170 per week, NYS DBL lags behind New Jersey TDB benefits, and even Massachusetts and Connecticut. The latter two states recently introduced statutory paid leave for non-work related illness or injury.
The last thing New York business owners would want to face right now is a premium increase for any benefits. Many New York City landmarks have shuttered as a result of recent events, and mom-and-pop shops in Main Street areas across upstate and downstate New York have closed permanently or struggle to stay alive.
But an increase in NY state disability insurance pay-outs could yield benefits to employers in the long run, especially as we face uncertainty related to the pandemic. Will DBL claims rise if we see a second wave of the virus? Will the government be so quick to offer Federal aid packages the second time around? Will businesses, already hard hit by recent events, be able to mount a second comeback? No one knows the answers to these questions.
When the first wave of COVID-19, the novel coronavirus, hit, the Federal government intervened with the Families First Act. The FFA alleviated much of the pressure on insurance carriers who otherwise would have faced unprecedented levels of claims because of COVID-19.
Here at The DBL Center, we also sprung to action. Our COVID-19 pre-screening software helped eliminate confusion regarding NY State Disability Insurance claims and FFA claims.
If the Federal government had not signed the FFA to help Americans with income replacement if they became ill from COVID-19 or had to care for family members with the virus, disability insurance carriers and brokers may have experienced a situation similar to what P&C brokers in the northeast experienced in the aftermath of Hurricane Sandy. Business owners and the insurance industry, alike, were not set up to respond to an emergency of this scale. Our country was not prepared; but perhaps there is no effective way to prepare for a global pandemic.
Many people reading this, even our brokers who are tapped into the industry, don’t realize that the governor initially had plans to increase DBL benefits when he introduced Paid Family Leave. A short-term disability insurance increase was in the original legislation, but removed before the Paid Family Leave Act was signed.
Increasing NY state disability insurance benefits will help business owners retain high-quality talent, which is a challenge in any economy. New York City, especially, is suffering from “brain drain,” or young, smart, and affluent couples leaving the city. Reports say five percent of Manhattan’s population fled the city between March 1 and May 1 at the height of the pandemic. Further, 69% of tech and finance employees said they would leave New York if they could work from home.
This exodus began years prior to the pandemic because of real estate prices, but was exacerbated this spring.
No, increased DBL may not tip the scales, but having peace-of-mind that you can survive on your disability insurance benefits should you become ill with coronavirus could give many New Yorkers one less reason to leave. Couple that with the most robust PFL policy in the nation, and New York becomes a more family-friendly state.
It’s a good time to make legislation changes right now. New Yorkers have become accustomed to rapid change and increased benefits, including the $600 Federal boost in unemployment benefits.
As always, because it is a shared benefit, DBL represents one way business owners can provide added value to their top employees at a small cost.
Until the time comes that NY State disability insurance benefits rise, business owners can purchase private disability insurance in New York. DBL Center brokers can offer their customers increased benefits through enriched DBL, white-glove service, and faster, more flexible payouts.
What do you think? Is it time for NY to increase their disability insurance benefits?
The insurance business, especially for those involved in selling statutory benefits like NY State disability insurance (NYS DBL coverage), has always been based on relationships.
The relationships between brokers and their customers, carriers and general agencies, and the wholesale insurance agency and its brokers, all make it easier to create the best benefits packages with the lowest premiums.
Just before New York started Phase 1 of its reopening initiative, Michael Cohen, DBL Center President and CEO, sat down – remotely – with Charles Callery, Regional VP for Lincoln Financial, and Michael Pelligrino, Lincoln Financial sales representative. The three pros talked about maintaining relationships and selling NY state disability insurance in the time of Covid-19.
You can watch part 1 of the video here.
Cohen took the call to record the Remote Rep Roundtable from his Melville office before his employees had come back to work, while Callery admitted he’d been fielding video conferences from his son’s bedroom.
Pelligrino quipped, “I’m sitting here just hoping my one-year old baby doesn’t wake up crying,” reflecting one of the familiar challenges faced by parents suddenly forced into working from home, often without viable daycare for little ones.
Although they were in different locations, the NY state disability insurance experts displayed the camaraderie they’d shared over the years. They shared how they first met, and then got to talking about how they’re modifying their businesses to remain relevant – and successful – amidst the challenges of a global pandemic that requires social distancing and remote work.
Callery advised brokers and reps: “Lean into your style. Don’t do anything out of your comfort level. Don’t force it.”
Lincoln Financial began developing podcasts and increasing their social media presence, but Callery also encouraged reps to find what works for them. “The folks who were accustomed to using LinkedIn continued to do that and they enhanced their presence. We had other reps establish weekly WebEx-type meetings,” Callery said.
Pelligrino, on the ground regularly as a sales rep, said he’s seen remote work increasing over the past five to seven years, and the pandemic has accelerated the trend. “I’d been seeing a lot more offices where maybe only 50% of the people are there, because a lot more people were starting to work from home. You have to be more creative, as a rep, to get that captive audience, and WebEx is one way to do it.”
“Experiencing [the pandemic] was almost like the five stages of grieving,” said Cohen, adding that he feels the industry has entered the “acceptance” phase. “We are all entrepreneurs and driven salespeople, type A personality. Let’s get creative and figure this out, because we’re all hungry to get back to work.”
Callery said he remains optimistic about business picking up in the late third to fourth quarter. “I think we will get back to close to where we were,” he said. “I do believe some creative aspects of doing business differently will come out of this experience, for sure.”
Watch the video to learn more about the shared history between Lincoln Financial and DBL Center and to hear the rest of their tips for connecting during Covid-19.
by Dawn Allcot