If you run a business or work for yourself in New York, you’ve probably heard about workers’ compensation insurance. It’s not just a good idea—it’s the law. This type of insurance protects your employees and yourself in case someone gets hurt or sick while doing their job. Without it, you could face fines, lawsuits, and a lot of stress.
How Do You Get Workers’ Compensation Insurance in New York?
In this guide, we’ll walk you through everything you need to know about getting workers’ compensation insurance in New York. Whether you’re hiring your first employee or just want to understand your responsibilities, this article will help you make smart, informed choices.
What Is Workers’ Compensation Insurance?
Workers’ compensation insurance helps cover the cost of injuries or illnesses that happen because of work. If an employee slips on a wet floor, gets hurt lifting something heavy, or develops an illness from working with certain chemicals, this insurance helps pay for:
Medical bills
Lost wages
Ongoing care or rehabilitation
Disability benefits
Death benefits (in tragic cases)
It also protects employers from being sued directly for those injuries. That’s one of the biggest benefits for business owners.
Is Workers’ Compensation Required in New York?
Yes, in most cases. If you own a business in New York and have at least one employee—whether full-time, part-time, or seasonal—you must carry workers’ compensation insurance. This rule applies even if your employee is a family member or works only a few hours per week.
There are a few exceptions. For example:
Sole proprietors with no employees usually don’t need to carry it.
Partnerships or LLCs without employees may not be required to carry coverage for owners.
Certain volunteer workers may not be covered under the same rules.
But overall, most businesses need it. If you’re not sure whether you need coverage, it’s best to ask the New York State Workers’ Compensation Board or speak to an insurance expert.
Step-by-Step: How to Get Workers’ Comp Insurance in New York
Let’s break it down into simple steps:
Step 1: Understand Your Legal Responsibility
Before you start shopping for insurance, make sure you know what the law expects from you. New York has strict rules about workers’ comp coverage. You’ll need to carry the right insurance before you hire employees—or even start training them.
If you don’t have coverage when required, you can face:
Fines of up to $2,000 for every 10 days without coverage
Criminal penalties, including possible jail time for willful non-compliance
Lawsuits from injured workers
A damaged reputation
That’s why the first step is understanding whether you’re legally required to carry it. If you are, don’t delay.
Step 2: Decide Where You’ll Buy Your Insurance
You have three main options in New York:
1. Private Insurance Companies
Many businesses get their coverage through a private insurance company that is licensed in New York. You can contact them directly or work with an insurance broker who will help you compare quotes.
2. New York State Insurance Fund (NYSIF)
This is a state-run insurance carrier that provides coverage to many small and mid-sized businesses. It’s often used by new businesses or those that can’t find affordable coverage in the private market.
3. Self-Insurance (for Large Businesses Only)
If your company is financially strong, you can apply to self-insure. That means you’ll pay for claims yourself rather than buying a policy. This is only an option for large employers who can prove they have the money to cover injuries.
Most small and mid-sized businesses go with either a private insurer or NYSIF.
Step 3: Gather Important Business Information
Before you get a quote or apply for a policy, you’ll need to gather some information about your business. This may include:
Your business name and address
Employer Identification Number (EIN)
Type of work your employees do
Estimated annual payroll
Number of employees
Any past claims or losses
This information helps insurers decide how risky your business is and how much your premium should be.
Step 4: Compare Quotes
It’s smart to get multiple quotes before choosing a policy. Rates can vary depending on your industry, your claims history, and your payroll size. Some industries, like construction or manufacturing, tend to pay higher premiums because injuries are more common.
When comparing policies, look at:
Premium rates
Payment options
What’s covered (and what’s not)
Customer service and claim handling
Discounts or safety programs
Working with an insurance broker can make this step easier, especially if you’re new to the process.
Step 5: Purchase the Policy and Get Proof of Coverage
Once you choose an insurance provider, you’ll complete an application and pay your first premium. After that, you’ll receive a certificate of insurance (often called a Form C-105 or U-26.3). This proves that you’re covered.
Keep this certificate on hand. You may need to show it:
During inspections
When applying for contracts
If asked by the state or local agencies
If you’re using NYSIF, you’ll also be required to follow their specific steps and documentation requirements.
Step 6: Post a Notice at Your Workplace
After you’re insured, New York law requires that you post a notice (Form C-105) in a visible place at your job site. This tells employees what to do if they get hurt and shows that you’re properly covered.
This is not just a formality—it’s a legal requirement.
Step 7: Keep Good Records and Stay Compliant
Once you have insurance, the work doesn’t stop. You’ll need to:
Keep payroll records
Report changes in your workforce or business
Renew your policy each year
Cooperate with claims investigations
File reports if injuries happen
If your business grows or you change what you do (for example, start offering a new service), your insurance needs may change too. Always let your insurer know.
What If You’re a Contractor or Freelancer?
If you’re self-employed in New York, the rules are a little different. You might not need workers’ compensation insurance unless:
You hire others to work for you
You’re working under a contract that requires it
You work in a high-risk field like construction
Some independent contractors choose to get coverage anyway, just to protect themselves. Others are required to provide a certificate of exemption (Form CE-200) to prove they are not legally required to carry workers’ comp.
How Much Does Workers’ Comp Cost in New York?
The cost of workers’ compensation insurance depends on several factors:
Industry – High-risk jobs cost more to insure
Payroll size – More employees = higher premiums
Claims history – Fewer claims = lower rates
Safety programs – Some insurers offer discounts
On average, you might pay anywhere from $0.50 to $3.00 per $100 of payroll. A small office business might pay a few hundred dollars a year. A roofing company might pay thousands.
That’s why it’s important to shop around and be honest during the application process. Misstating your payroll or industry can lead to penalties later.
What Happens If You Don’t Get Coverage?
Operating without workers’ compensation insurance in New York is risky—and expensive.
If you’re caught without it, you could face:
Civil penalties – These add up fast
Criminal charges – Especially for repeat or willful violations
Employee lawsuits – Injured workers can sue you directly
Business shutdown – In some cases, you may be forced to stop work
It’s not worth the risk. Getting covered is easier and cheaper than facing penalties.
Common Mistakes to Avoid
Here are a few mistakes that many new business owners make when getting workers’ comp:
Assuming you don’t need it – Always double-check your legal requirements
Waiting until someone is hurt – You must get insurance before hiring
Choosing the cheapest policy without reading the details – Make sure it actually covers what you need
Forgetting to post the notice – This is a legal step you must follow
Not updating your insurer when things change – Keep them informed about payroll and job duties
Conclusion
Getting workers’ compensation insurance in New York doesn’t have to be hard. Once you understand the rules and follow the right steps, it becomes a simple part of running your business. Protecting your employees means protecting yourself too.
Start by figuring out if you’re required to have coverage. Then compare your options, buy a policy, and stay compliant. Whether you’re hiring your first worker or growing your team, having the right insurance gives you peace of mind—and keeps you on the right side of the law.
Related topic:
What Is Workers Compensation Insurance in Australia?
