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New York workers' compensation insurance: Your guide to requirements and getting a policy
If you’re a New York employer looking to protect both your business and your team, you’re in the right place. At Beyond, we provide the essential information you need to understand how workers’ compensation works and how to stay compliant.
Simply put, purchasing workers’ compensation insurance is a win-win for both employers and employees. It provides injured employees with no-cost medical care and wage replacement when they’re unable to work, while protecting employers from expensive legal costs and lawsuits that could arise from workplace injuries.
Under New York state law, any employer with at least one employee even part-time – must carry continuous workers’ compensation insurance. This includes:
Family members employed in the business
Day laborers
Leased employees
Farm workers
Domestic workers working 40+ hours/week
Unpaid volunteers
Most subcontractors
Employers must also post a notice of coverage in a prominent location with policy details, including insurer name, address, and policy number. Failure to post this notice can result in a fine of up to $500 per violation.
The following may be exempt:
Sole proprietors
Partnerships with no employees
Corporations with only 1–2 owners and no employees
Nonprofits without compensated employees (excluding clergy or teachers)
Licensed insurance or real estate brokers not classified as employees
Domestic workers under 40 hours/week and not living on-site
Native American enterprises owned by tribes
Executive officers of nonprofits
Nonprofit amateur athletic organizations
Still unsure about your obligation? Visit the New York Workers’ Compensation Board.
New York workers’ comp provides:
Medical Coverage
Covers medical, dental, surgical care, prescriptions, assistive devices, and reimbursement for travel related to treatment.
Wage Replacement
After 7 days out of work, employees qualify for wage benefits. If they’re out for 14 days, benefits are retroactive from day one. Benefit types include:
Temporary Partial Disability (TPD)
Temporary Total Disability (TTD)
Permanent Partial Disability (PPD)
Permanent Total Disability (PTD)
Survivor Benefits
If a workplace fatality occurs, spouses and/or minor children receive weekly cash benefits, and funeral costs up to:
$12,500 in NYC metro counties (e.g., Bronx, Queens)
$10,500 elsewhere
Employers can purchase workers’ comp from:
A private carrier, broker, or agent
The New York State Insurance Fund (NYSIF), a nonprofit agency
Self-insurance, either individually (must apply with the Workers’ Compensation Board) or through a group program
Businesses are identified by their Federal Employer Identification Number (FEIN). Be sure it’s correct on all paperwork. If not, submit the IRS CP-575 form to the NY Department of Labor to update it.
Businesses without workers’ comp coverage may face:
Stop-Work Orders
Fines of $1,000 to $5,000 (for businesses with ≤5 employees – misdemeanor)
Fines of $5,000 to $50,000 (for >5 employees – felony)
Civil penalty of $2,000 every 10 days without coverage
Liability for all medical and wage costs
Employees must:
Notify employers in writing within 30 days
Include details of when, where, and how the injury occurred
Use a registered physician or occupational health clinic
They must also file a claim within two years, or 90 days in cases of hearing loss.
Employers must:
Notify their insurance carrier within 10 days
Submit the Employer’s Report of Work-Related Injury or Illness
For more help, contact the New York Workers’ Compensation Board, or visit:
For more details, contact the New Mexico Workers’ Compensation Administration (WCA) or consult the resources below:
Having workers’ comp coverage isn’t just smart, it’s legally necessary. It protects your business from lawsuits and penalties while ensuring that your employees get the support they need.
If you need help securing a policy, Beyond is here to assist you.
