New York workers' comp coverage requirements

Virtually every employer in New York must carry workers' compensation insurance (WCL §2 & §3). There is no minimum-employee threshold — a single part-time, seasonal, borrowed, or even unpaid worker triggers the requirement. It's one of the strictest mandates in the country.

Key facts

Virtually all New York employers must carry coverage — one employee triggers it.
Going uninsured risks up to $2,000 per 10-day period plus criminal charges (up to a felony).
Coverage comes from a private carrier, NYSIF, or approved self-insurance.
Corporate officers can be held personally liable for penalties.

Who is covered

Nearly all employees — full-time, part-time, temporary, seasonal, casual/day labor, leased, and borrowed workers.
For-profit businesses of every form — sole proprietorships, partnerships, LLCs, LLPs, corporations — the moment they have employees.
Nonprofits must cover compensated employees.
Farms with employees — no hour threshold.
Out-of-state employers with workers in NY (roughly 40+ hrs/wk for 2+ weeks, or 25+ days in NY).
Domestic/household workers once they work 40+ hours/week for the same household.

Who may be excluded

Sole proprietors, partners, and LLC/LLP members with no employees (may cover themselves voluntarily).
1–2 person corporations where those people own all the stock and hold all offices, with no other employees.
Clergy doing only religious duties; teachers at 501(c)(3) institutions doing only teaching.
Unpaid volunteers for nonprofits; amateur athletes.
Licensed real estate / insurance agents paid substantially by commission under written contract.
Genuine independent contractors — but see the warning below.

⚠ "Independent contractor" is not a magic wordNew York looks at the actual working relationship, not the label on a 1099. Under the Construction Industry Fair Play Act a worker is presumed an employee unless the business proves all three tests (free from control, work outside the usual business, independently established trade). Misclassifying employees to dodge premiums is fraud — with civil penalties and personal officer liability.

How employers get covered

Four legal routes — and coverage must be continuous, with no lapse, even when switching carriers:

A private insurance carrier authorized by NY.
The NY State Insurance Fund (NYSIF) — the insurer of last resort: it must cover any employer that asks, regardless of industry, size, or safety record.
Individual self-insurance — with Board approval and a security deposit.
Group self-insurance — approved employer pools.

Penalties for going without

Up to $2,000 per 10-day period uninsured (WCL §52[5]) — first notices routinely top $12,000.
Criminal: a misdemeanor with ≤5 employees ($1,000–$5,000); a Class E felony with 6+ employees ($5,000–$50,000); repeat within 5 yrs = Class D felony.
Stop-Work Orders (WCL §141-a) shut the business down immediately.
Personal liability: corporate president, secretary & treasurer are personally on the hook (§26, §52, §131).
Failure to post the Notice of Compliance: $500 per violation.

Employer housekeepingPost the carrier-supplied Notice of Compliance (Form C-105) in English and Spanish at every worksite, keep a 4-year payroll/classification record (WCL §110), and file the Employer's Report of Injury (C-2F) promptly after an injury.

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