NY · Workers' compensation
New York Workers' Compensation Insurance
Who must carry coverage in New York, how owners and officers are treated, what happens if you go without it, and how to compare carriers.
New York has no minimum employee-count threshold; virtually all employers must provide coverage for anyone who works for them under Workers' Compensation Law Sections 2 and 3. Coverage becomes mandatory as soon as a business hires its first outside worker.
Who must carry coverage in New York
New York has no minimum employee-count threshold; virtually all employers must provide coverage for anyone who works for them under Workers' Compensation Law Sections 2 and 3. A sole proprietor with no employees isn't required to carry a policy, and a one- or two-person corporation where each owner holds an office and owns at least one share can also skip coverage if there are no other workers, volunteers, or subcontractors. Coverage becomes mandatory as soon as a business hires its first outside worker.
Owners, officers, LLC members
Partners and LLC members are not treated as employees and don't need to be covered unless the business has hired staff. In a corporation with only one or two officers who together own all the stock, those officers can operate without a policy if there are no other workers; once a corporation has more than two officers or shareholders, or two owners who don't jointly hold all the stock, coverage is required even for the owners themselves. Officers who are covered, or who want to formally opt out where the law allows it, typically handle that through election paperwork filed with their carrier, and carriers apply New York's standard executive officer payroll rules for premium calculation.
Independent contractors and subcontractors
New York applies especially strict tests for construction and trucking: construction workers are presumed employees unless they pass a specific three-part independence test, and for-hire drivers are presumed employees unless they meet detailed criteria including separate tax reporting and their own capital investment. Businesses outside those industries must also show the contractor runs a genuinely separate business, carries their own insurance, and advertises independently. Collecting a current certificate of insurance from every subcontractor is standard practice given how easily New York reclassifies uninsured contractors as employees.
Penalties for going without coverage
Failure to secure coverage is a misdemeanor (fines of $1,000 to $5,000) for employers with five or fewer employees, and a Class E felony (fines of $5,000 to $50,000, plus additional penalties) for employers with more than five; a repeat violation within five years can be charged as a Class D felony with fines up to $50,000. Separately, the Board can assess civil penalties of up to $2,000 for each 10-day period without coverage, or double the cost of compensation for that period, and can issue a stop-work order halting all business activity. Corporate officers, sole proprietors, and partners can be held personally liable.
What injured workers receive
Injured workers receive necessary medical treatment with no dollar cap. Temporary disability (lost wage) benefits are paid at two-thirds of the worker's average weekly wage, subject to a maximum that is reset each July 1 based on the New York State Average Weekly Wage (the maximum is $1,281.50 per week for the period July 1, 2026 through June 30, 2027) and a state minimum. Permanent disability and death benefits are calculated separately under the Workers' Compensation Law.
How workers' comp is bought in New York
Employers can buy coverage in New York's competitive private market, where our agency can compare quotes across carriers, or through the New York State Insurance Fund (NYSIF), the state's competitive public insurer that also acts as a market of last resort for harder-to-place risks. Rates and classifications are filed by the New York Compensation Insurance Rating Board (NYCIRB), an independent bureau rather than NCCI. Small employers should keep in mind that New York's coverage rules for owners are unusually specific (the one-or-two-officer exception, the all-stock-ownership requirement), so it's worth confirming with an agent whether an owner is actually exempt before assuming so.
Rating bureau
New York Compensation Insurance Rating Board
Visit NYCIRBMaintains its own classification system rather than using NCCI codes.
Common New York industries we quote
New York's small-business base includes contractors and trades across the five boroughs and upstate, restaurants and hospitality, salons and personal-care businesses, professional service firms, and retail and logistics operations, all of which need workers' comp as soon as they bring on staff.
- Auto Repair & Body Shops
- Cleaning & Janitorial Services
- Daycare & Child Care Centers
- Electrical Contractors
- General Contractors & Trades (with employees)
- Home Health Care Agencies
- Hotels & Lodging
- HVAC Contractors
- Landscaping & Lawn Care
- Light Manufacturing & Machine Shops
- Medical & Dental Offices
- Nonprofits & Churches
- Painting Contractors
- Plumbing Contractors
- Professional Offices (accounting, law, consulting, insurance, real estate)
- Restaurants & Food Service
- Retail Stores
- Salons, Barbershops & Spas
- Warehouses & Distribution
Popular class codes
Class codes describe the work your employees perform and drive how payroll is rated. Browse the groups below or search the full lookup.
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New York workers' comp questions
Do New York sole proprietors need workers' comp?
Not if they have no employees, though they can voluntarily buy a policy. The requirement kicks in as soon as the business hires its first worker.
Can a New York corporation's owners skip coverage for themselves?
Only in a narrow case: a corporation with just one or two officers who together own all the company's stock and have no other workers, volunteers, or subcontractors can operate without a policy for those owners.
What's the difference between NYSIF and a private carrier in New York?
The New York State Insurance Fund is a competitive public insurer that any employer can buy from, and it also serves as a backstop for businesses that can't find coverage elsewhere; private carriers compete alongside it in the open market.
How severe are the penalties for going uninsured in New York?
They scale with size: a misdemeanor with fines from $1,000 to $5,000 for employers with five or fewer workers, and a felony with fines up to $50,000 for larger employers, on top of possible stop-work orders and personal liability for officers.
How much does an injured worker get paid in New York?
Generally two-thirds of their average weekly wage, subject to a maximum the state resets every July 1 based on the statewide average wage.
Do I need to check a subcontractor's insurance in New York?
Yes, especially in construction, where workers are presumed to be employees unless the subcontractor passes a strict independence test; a current certificate of insurance protects the hiring business.
Sources
- wcb.ny.gov — https://www.wcb.ny.gov/content/main/coverage-requirements-wc/wc-coverage-required.jsp
- wcb.ny.gov — https://wcb.ny.gov/content/main/Employers/violations-wclaw.jsp
- wcb.ny.gov — https://www.wcb.ny.gov/content/main/SubjectNos/sn046_1805.jsp
- nycirb.org — https://www.nycirb.org/
- ww3.nysif.com — https://ww3.nysif.com/
Last reviewed · Reviewed by Provident Financial Group licensed agents
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One application goes out to every carrier we can access for your class of business. You get a ranked comparison you can review and purchase online — with a licensed agent available whenever you want one.
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