Is workers comp required in New York?
New York generally requires nearly every employer with one or more employees to carry workers compensation, including part-time staff and family members in many cases. Owners, partners and corporate officers are treated under their own rules, and some workers such as certain agricultural or domestic employees may be handled differently.
Buying coverage in New York
Coverage in New York is sold by private insurers. Every state also has a market of last resort, so even higher-risk or brand-new businesses can generally find a policy. New York also has a competitive state-chartered carrier, New York State Insurance Fund (NYSIF), that sells coverage alongside private insurers.
Who sets the rules
The New York State Workers' Compensation Board oversees workers comp in New York. Classifications and loss costs in New York come from the New York Compensation Insurance Rating Board (NYCIRB), an independent rating organization, so codes and rules can differ from NCCI states.
What New York employers should know
- New York uses its own rating board, so class codes and experience modifications follow New York rules.
- Construction contractors in New York City are routinely asked for certificates, additional insured status on liability policies, and proof of DBL and PFL along with workers comp.
New York also requires most employers to provide Disability Benefits (DBL) and Paid Family Leave (PFL) coverage, which are separate from workers comp. See statutory disability coverage.
New York facts employers ask about
The New York State Workers' Compensation Board requires nearly every employer with one or more employees, including part-time workers, to carry workers comp. New York is also one of the few states that requires a separate statutory policy for off-the-job injuries and illnesses: Disability Benefits (DBL), which since 2018 includes Paid Family Leave.
Coverage is sold by private carriers and by the New York State Insurance Fund (NYSIF), which competes with them and also insures businesses that private carriers decline. Classifications and loss costs come from the New York Compensation Insurance Rating Board (NYCIRB), not NCCI, so class codes can differ from neighboring states.
Penalties for going without coverage are steep: the Board can assess up to $2,000 for every 10-day period without workers comp, and an uninsured employer is personally liable for the cost of claims. Contractors applying for building permits in New York City and many other municipalities must show proof of both workers comp and disability coverage on Board-approved forms, so keep certificates current.
Sources: NYS Workers' Compensation Board; NYCIRB; New York State Insurance Fund. Rules change; confirm current requirements with the agency before you rely on them.
How premiums are calculated
Your New York premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll. Learn more about how workers comp rates work and preparing for an audit.
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New York workers comp FAQ
Is workers comp required in New York?
New York generally requires nearly every employer with one or more employees to carry workers compensation, including part-time staff and family members in many cases. Rules and exceptions change, so confirm your situation with the state agency or an agent.
Who oversees workers comp in New York?
The New York State Workers' Compensation Board administers the workers compensation system in New York.
Can I buy New York workers comp from a private insurer?
Yes. Private insurers write workers comp in New York, and a market of last resort is available for businesses that are hard to place.
How is workers comp priced in New York?
Classifications and loss costs in New York come from the New York Compensation Insurance Rating Board (NYCIRB), an independent rating organization, so codes and rules can differ from NCCI states. Your New York premium starts with payroll in each job classification. Experience mods, schedule credits and minimum premiums then adjust it, and the year-end audit settles the difference between estimated and actual payroll.