Workers Comp Insurance in New York: What Every Business Owner Needs to Know

New York has some of the most strictly enforced workers compensation laws in the country. If you employ anyone in New York — even a part-time worker — you are required by law to carry workers comp coverage. Here’s everything New York business owners need to know.

New York Workers Comp Requirements

Under New York Workers’ Compensation Law, virtually every employer must carry workers comp insurance. This includes businesses with one or more employees, family-owned businesses, and corporations whose principal officers are not specifically exempt. Sole proprietors with no employees are generally exempt, but may need coverage to work as subcontractors on certain projects.

The New York Workers’ Compensation Board

The New York Workers’ Compensation Board (WCB) administers the workers comp system in the state. The WCB enforces coverage requirements, handles disputes, and sets many of the rules around how claims are processed. Businesses found to be uninsured can face fines of up to $2,000 per 10-day period of noncompliance, and business principals can be held personally liable for injury costs.

New York State Insurance Fund (NYSIF)

New York has a state-run option called the New York State Insurance Fund (NYSIF). It’s not the only option — private carriers compete for workers comp business in New York too — and private market rates are often more competitive than NYSIF for many industries. An independent agent can compare NYSIF with private carriers to find the best rate for your business.

New York Workers Comp and Payroll Audits

Like all workers comp policies, New York policies are subject to end-of-year payroll audits. The audit verifies that the payroll you reported at the start of the year matches what you actually paid. Underreporting payroll can result in large audit bills and penalties.

Get a Free New York Workers Comp Quote

Comp Matters Inc. is based in Bayport, Long Island, and serves businesses throughout New York — Nassau County, Suffolk County, the five boroughs, and upstate. Call (631) 248-2500 for a free workers comp quote.