New York · state requirements

Workers’ comp insurance in New York

For New York employers with even one worker: who must carry coverage, what the separate disability and Paid Family Leave mandates add, what it costs and how to stay compliant.

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What similar businesses pay

Workers’ comp: About $43 a month
Plumbing payroll (class 5183): $3.52 per $100 of payroll
Clerical office payroll (class 8810): $0.06 per $100 of payroll

Published benchmarks, not quotes. Your price depends on underwriting.

Cost

What workers’ comp insurance in New York costs

About $43 a month

Workers’ comp

Insureon average for New York small-business customers, updated April 2026

$3.52 per $100 of payroll

Plumbing payroll (class 5183)

NYCIRB loss cost effective October 1, 2026, before each insurer’s multiplier

$0.06 per $100 of payroll

Clerical office payroll (class 8810)

NYCIRB loss cost effective October 1, 2026, before each insurer’s multiplier

Up to $411.91 a year per employee

Paid Family Leave

2026 employee payroll contribution cap, NYS Workers’ Compensation Board

Insureon puts the average New York workers’ comp policy bought through it at $43 a month, or $512 a year, as of April 2026; most of those customers have fewer than five employees. Bigger and riskier payrolls pay far more, because premium is charged per $100 of payroll by class code. NYCIRB loss costs run from $0.06 per $100 for clerical staff to $11.23 for carpentry (class 5403), and insurers apply their own multipliers on top. As an illustration only, a plumbing firm with $200,000 of payroll starts from about $7,038 in loss costs before the insurer’s multiplier, any experience mod and the state assessment. The state approved a 21.9% overall cut in loss costs for policies starting on or after October 1, 2026.

What moves your price

The class code for each worker’s duties, from $0.06 per $100 of payroll for clerical staff to $11.23 for carpentry in NYCIRB loss costs
Total payroll, since premium is charged per $100 of wages
Your insurer’s loss cost multiplier, because NYCIRB loss costs are not final rates
Your experience mod, based on your own claims history
Uninsured subcontractors, whose payroll an insurer may charge to a general contractor
Policy start date: the 21.9% loss cost cut applies from October 1, 2026

New York

What’s different in New York

Coverage starts with your first worker

The Workers’ Compensation Board says virtually all New York employers must carry coverage (WCL §2 and 3). Part-time, seasonal, day, leased and borrowed workers count, as do unpaid volunteers and family members in a for-profit business. There is no small-employer threshold.

Penalties of $2,000 for every 10 days uninsured

Under WCL §52(5), the Board can charge up to $2,000 for each 10-day period without coverage. It warns the first penalty notice may already exceed $12,000, and sole proprietors, partners and a corporation’s president, secretary and treasurer are personally liable.

Going uninsured is a crime that scales with headcount

Failing to cover five or fewer employees within 12 months is a misdemeanor with a $1,000 to $5,000 fine. Above five employees it is a class E felony with a $5,000 to $50,000 fine; a repeat conviction within five years is a class D felony, per the Board.

Stop-work orders and public-works bans

The Board can order all business activity to stop when coverage is missing or a Board debt is unpaid (WCL §141-a). Penalized businesses are barred from public works contracts for one year, or five years after a felony conviction (WCL §141-b).

Two more mandatory policies: disability and Paid Family Leave

New York also requires disability benefits and Paid Family Leave coverage once you have one or more employees on 30 days in a calendar year (WCL §202). It is due four weeks after that 30th day and is a separate policy from workers’ comp.

Construction and trucking workers are presumed employees

Two Fair Play Acts presume construction workers and commercial goods drivers are employees unless strict tests are met. Under the construction act, the Board says misclassifying workers can cost up to $2,500 per worker for a first violation and $5,000 for a second within five years.

Coverage

Coverage New York businesses need

Workers’ comp and employers’ liability

Pays medical care and lost wages for work injuries and illnesses. For injuries from July 1, 2026 to June 30, 2027, the weekly wage benefit is capped at $1,281.50, per the Board. Out-of-state employers need New York listed in Item 3A.

How workers’ compensation works →

Disability benefits (DBL)

Pays employees hurt or sick off the job 50% of their average weekly wage, up to $170 a week for up to 26 weeks (WCL §204 and 205). Employers may deduct 0.5% of wages, capped at 60 cents a week, toward the cost.

Paid Family Leave

Up to 12 weeks of job-protected paid leave to bond with a new child, care for a seriously ill relative or help during a military deployment. In 2026 it pays 67% of wages up to $1,228.53 a week, funded by employee deductions of 0.432% of pay.

The New York State Insurance Fund

NYSIF is a self-supporting state carrier that competes with private insurers. Insureon notes it guarantees coverage, even for businesses declined elsewhere.

How workers’ compensation works →

Owner coverage for subcontractors

Owners with no employees need not cover themselves, but the Board notes general contractors routinely demand proof of a sub’s own policy, so many one-person trades buy one that includes themselves.

How workers’ compensation works →

Rules

New York requirements

New York’s Workers’ Compensation Law reaches almost every employer with a single worker and adds disability and Paid Family Leave on top. State and local agencies check coverage before issuing permits and contracts.

Requirement	Applies to	What it means
Workers’ comp coverage	Virtually all employers with one or more employees, including part-time, family and unpaid workers	Required under WCL §2 and 3; notice of coverage must be posted at each workplace under WCL §51.
Owner exemptions	Sole proprietors, partners and LLC members with no employees; one- or two-person corporations whose officers own all stock	Coverage not required, but owners may cover themselves. Exempt businesses prove it with Form CE-200 from the Board.
Disability and Paid Family Leave	Employers with one or more employees on at least 30 days in a calendar year	Coverage due four weeks after the 30th day of employment (WCL §202). Employees may contribute up to 60 cents a week for DBL and 0.432% of wages, capped at $411.91, for PFL in 2026.
Domestic workers	Households employing a nanny, aide, housekeeper or similar worker 40 or more hours a week	Workers’ comp required (12 NYCRR §355). A homeowners policy rider does not cover these workers, per Insurance Law §3420(j).
Out-of-state employers	Employers with NY locations, NY construction work, state permits or 25 or more employee days in NY in the prior year	Need a full New York policy with NY in Item 3A, per the Board. Driving through without stops does not count.
Proof for permits, licenses and contracts	Businesses seeking state or municipal permits, licenses or contracts, including renewals	WCL §57 and §220[8]: file Form C-105.2 (U-26.3 from NYSIF) and DB-120.1, or CE-200 if exempt. ACORD certificates are not accepted.
Injury reporting	All covered employers	Notify your carrier of any work injury immediately; a late or missing first report of injury can bring a penalty of up to $2,500.

Compare workers’ compensation options in New York.

One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.

Pay less

How to lower the cost

Collect a Form C-105.2 or U-26.3 from every subcontractor before work starts, so their payroll is not charged to you at audit.
Split payroll by duty so office staff are rated as clerical; the Board treats concealing duties as misrepresentation.
At renewal, ask how your insurer has applied the 21.9% loss cost cut for policies starting on or after October 1, 2026.
Get a NYSIF quote alongside private carriers, since it competes with them.
Keep coverage continuous: insurers report cancellations to the Board, and penalties accrue for every period without coverage.
Compare comp, disability and Paid Family Leave quotes together; Florin is an independent broker that compares options from several insurers.

Before you start

What underwriters ask for

Exact legal name and FEIN, which must match every certificate
Payroll by job duty for the past year and next 12 months
Headcount, including part-time, seasonal and family workers
Subcontractor list with copies of their workers’ comp certificates
Loss runs from current and prior insurers
Owners and officers you want included or excluded
Work locations in and outside New York and days spent in each state
Your current disability and Paid Family Leave policy, if any

Common questions

Workers’ comp insurance in New York: questions

Do I need workers’ comp in New York for one part-time employee?

Yes. The Workers’ Compensation Board counts part-time, temporary, seasonal and even unpaid workers as employees, so a single part-timer triggers the requirement.

Is disability insurance separate from workers’ comp in New York?

Yes. Disability benefits and Paid Family Leave are a separate required policy covering off-the-job illness, injury and family leave, partly funded by employee deductions.

How much does New York workers’ comp pay an injured worker?

For injuries from July 1, 2026 through June 30, 2027, weekly wage benefits are capped at $1,281.50 and the minimum is $384.45, or the worker’s actual wages if lower, per the Board.

Can I use an ACORD certificate to get a New York permit?

No. Under WCL §57, agencies need Form C-105.2 from your insurer (U-26.3 from NYSIF) and Form DB-120.1 for disability coverage, or a CE-200 if you are exempt.

Does my homeowners policy cover my nanny or housekeeper?

No. The Board says a homeowners policy’s workers’ comp rider does not cover domestic workers, and a policy is required once one works 40 or more hours a week for you.

Are workers’ comp rates going down in New York?

Loss costs are. The state approved a 21.9% overall decrease effective October 1, 2026, but your price still depends on your insurer’s multiplier, class codes and claims.

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Sources (11)

Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated October 2026.