Workers Compensation Insurance in New York
New York requires workers comp for nearly every employer. K&N finds your best rate across 15+ carriers — even if you’ve been declined elsewhere.
What Is Workers Compensation Insurance?
Workers compensation insurance covers medical expenses, lost wages, and rehabilitation costs when an employee is injured or becomes ill because of their job. It also provides death benefits to the families of workers killed on the job.
In New York, workers comp is a no-fault system — employees receive benefits regardless of who caused the injury, and in exchange, they give up the right to sue their employer for workplace injuries. This protects both sides: employees get guaranteed medical care and income, employers avoid potentially devastating lawsuits.
Workers comp also covers occupational diseases — conditions caused by long-term workplace exposure, like carpal tunnel syndrome from repetitive tasks or respiratory issues from chemical exposure.
New York Workers Comp Requirements
New York has some of the strictest workers compensation laws in the country. Under Section 10 of the New York Workers’ Compensation Law, virtually every employer must carry workers comp — even if you have just one employee.
Who Must Carry Workers Comp in New York?
- All employers with one or more employees — full-time, part-time, or seasonal
- Construction businesses — no exceptions, even sole proprietors with no employees must have coverage to work on most job sites
- Domestic employers — if your household worker (nanny, housekeeper) works 40+ hours per week
- Farm employers — if annual payroll exceeds $1,200
Penalties for Non-Compliance
Operating without workers comp in New York is a criminal offense:
- Fines of $2,000 per 10-day period without coverage
- Additional penalty of $2,000 per employee per 10-day period for construction firms
- Possible criminal prosecution — a misdemeanor for the first offense, a felony for repeat offenders
- Personal liability for all injury costs if an uninsured employee gets hurt
The New York Workers’ Compensation Board actively investigates uninsured employers. It’s not a risk worth taking.
What Does Workers Comp Cover?
New York workers compensation provides four categories of benefits:
Medical Benefits
All reasonable and necessary medical treatment related to the workplace injury — doctor visits, surgery, physical therapy, prescriptions, medical equipment. No deductibles or copays for the injured worker.
Lost Wage Benefits
Temporary disability payments equal to two-thirds of the worker’s average weekly wage (up to the state maximum). New York adjusts these maximums annually — for 2026, the maximum weekly benefit is $1,145.43.
Permanent Disability Benefits
If an injury results in permanent impairment — loss of use of a body part, reduced earning capacity — the worker receives additional compensation based on the severity and type of disability.
Death Benefits
If a worker dies from a job-related injury or illness, their dependents receive two-thirds of the worker’s average weekly wage, plus up to $12,500 for funeral expenses.
Important: Workers comp does NOT cover injuries to customers or the public — that’s what general liability insurance is for. Most businesses need both.
How Much Does Workers Comp Cost in New York?
Workers comp premiums in New York are calculated using a formula: classification rate × payroll (per $100) × experience modifier. The key factors:
- Classification code — office workers cost far less than roofers. Each job type has a rate set by the NY Compensation Insurance Rating Board (NYCIRB)
- Total payroll — more employees and higher wages mean higher premiums
- Experience modifier (EMR) — your company’s claims history compared to industry average. EMR below 1.0 means fewer claims than average (lower rates); above 1.0 means more claims (higher rates)
- Industry — construction and manufacturing pay significantly more than office-based businesses
For a small office-based business with 5 employees, expect to pay $2,000-$5,000 per year. Construction firms with 10 workers might pay $15,000-$40,000+ depending on the trade.
K&N shops workers comp across multiple carriers and state fund options. If you’ve been declined or have a high EMR, we have access to specialty markets that work with hard-to-place risks.
Why Choose K&N for Workers Comp?
We insure hard-to-place risks. High EMR? Claims history? New business with no experience? We have access to carriers and state fund programs that work with businesses other brokers turn away.
Pay-as-you-go billing available. Instead of a large upfront deposit, some of our carriers offer monthly payments based on actual payroll — better cash flow for your business.
Multilingual service. We explain coverage, claims procedures, and compliance requirements in English, Spanish, Arabic, French, and Russian. Important when your workforce speaks multiple languages.
Compliance support. We help you stay compliant with NY posting requirements, C-105.2 forms, and Workers’ Compensation Board regulations. One less thing to worry about.
Bundle and save. Pair workers comp with general liability, commercial auto, or a Business Owners Policy for multi-policy discounts.
Workers Compensation FAQ
Do I need workers comp if I only have one employee?
Yes. New York requires workers compensation coverage for businesses with even one employee — whether full-time, part-time, or seasonal. The only common exemption is sole proprietors with no employees (except in construction).
Do I need workers comp for 1099 contractors?
Generally no — independent contractors are responsible for their own coverage. However, New York scrutinizes contractor relationships closely. If a worker is misclassified as 1099 when they’re actually an employee, you’re liable for their workers comp. Construction businesses face extra scrutiny.
What happens if an employee gets hurt and I don’t have workers comp?
You face criminal penalties (fines of $2,000+ per 10-day period), personal liability for all medical costs and lost wages, and possible jail time. The injured employee can also sue you directly — the no-fault protection only applies when you carry coverage.
Can I get workers comp if I’ve been declined?
Yes. K&N has access to the New York State Insurance Fund (NYSIF) and specialty carriers that accept businesses with claims history, high EMR, or new ventures. Call us at (833) 840-8500 — we find coverage for hard-to-place risks.
What’s the difference between workers comp and disability insurance?
Workers comp covers injuries that happen on the job. New York Disability Benefits Law (DBL) covers off-the-job injuries and illnesses. Most NY employers must carry both. K&N can bundle workers comp and DBL together for simpler administration.
Get Your Workers Comp Quote Today
Don’t risk criminal penalties. One call — we find your best workers comp rate, even if you’ve been declined.
Queens: (718) 739-9090 | Huntington: (631) 646-9090