Workers’ Compensation Insurance

Workers’ compensation insurance pays medical costs and lost wages when an employee is hurt or gets sick on the job, and it’s required by law in nearly every state once you hire your first employee. Weinsurexyz places workers’ comp coverage through multiple carriers — not just one — so you get a policy priced and structured for your actual payroll, class codes, and claims history, backed by a broker who manages your audits and Experience Modification Rating instead of leaving you to a call center.

What does workers’ compensation insurance cover?

• Medical expenses — emergency care, surgery, ongoing treatment, and physical rehabilitation for a work-related injury or illness.
• Lost wages — partial wage replacement while an employee is out recovering.
• Disability benefits — temporary or permanent disability payments if an employee can’t return to their previous role.
• Death benefits — funeral costs and ongoing support for dependents after a fatal workplace incident.
• Employer’s liability — legal defense and settlement costs if an injured employee sues over unsafe working conditions (included in most workers’ comp policies).
• Job retraining — vocational training if an employee can’t return to their original position.

Workers’ compensation insurance coverage limits: Part One vs. Part Two

A standard workers’ comp policy has two parts, and each works differently.

• Part One — workers’ compensation: pays the benefits state law requires, meaning medical care and lost wages for an injured employee. There’s no dollar cap. The policy pays whatever the law requires, for as long as the law requires it.
• Part Two — employer’s liability: covers your legal defense and any settlement if an employee, their family, or a third party sues you over a workplace injury. This part does have limits, most commonly $100,000 per accident, $100,000 per employee for disease, and $500,000 total for disease.

Many general contractors, landlords, and commercial clients require higher employer’s liability limits, often $500,000 or $1,000,000, before they’ll sign a contract. Raising those limits usually costs relatively little, and an umbrella policy can add more on top. Send us your contract requirements before you bind so the policy matches them.

Who needs workers’ compensation insurance?

Most states require workers’ compensation insurance as soon as a business has one or more employees, though the exact employee threshold, penalties, and exemptions vary by state. Businesses in physically demanding or higher-injury-frequency industries carry the most exposure — and often pay the most in premiums if the policy isn’t structured correctly. Weinsurexyz focuses on placing coverage for:

• Pharmacy Stores
• Lawyer Firms
• Contractors and construction
• Restaurants and food service
• Landscaping
• Cleaning and janitorial services

Sole proprietors, single-member LLCs, and independent contractors aren’t always legally required to carry workers’ compensation insurance, but many buy a policy anyway to satisfy a client contract or to protect themselves, since a personal health plan typically excludes work-related injuries.

How much does workers’ compensation insurance cost?

Workers’ comp premium is calculated primarily from three inputs: your payroll, the class code(s) assigned to each employee’s job duties, and your Experience Modification Rating (E-Mod), which reflects your claims history relative to other businesses in your industry. A rough formula insurers use:

(Payroll ÷ 100) × Class Code Rate × E-Mod = Estimated Annual Premium

Two businesses with identical payroll can pay very different premiums if one has a clean claims record and the other has an E-Mod above 1.0. This is the piece that generic online quote engines don’t manage for you — and it’s where a broker earns their keep. Ask us about an E-Mod review and premium audit before your next renewal.

Other factors that move your rate:

• Industry and specific job duties (a roofer and a bookkeeper are rated very differently even at the same company)
• Total annual payroll
• Number of employees and how they’re classified
• Coverage limits and deductible selections
• Claims history and safety programs in place

Businesses with seasonal or fluctuating headcount may also qualify for pay-as-you-go workers’ compensation insurance, which bases premiums on actual payroll each pay period instead of an upfront estimate.

Workers’ comp cost by industry

Rates are set by class code, so your industry affects your premium more than almost anything else. Here’s how the businesses we insure most often compare:

For a number specific to your business, use the calculator below or call us for a quote.

What’s not covered by workers’ compensation insurance?

• Injuries caused by intoxication or a clear violation of company safety policy
• Injuries claimed after employment has ended
• Wages for a replacement worker hired to cover an injured employee’s shift
• OSHA fines resulting from a safety violation
• Injuries to non-employees (that fall under general liability insurance)

How a workers’ compensation claim works in New York

1. The employee reports the injury. New York gives employees 30 days to notify you, ideally in writing. Late notice can put their benefits at risk, so encourage same-day reporting.
2. You report it within 10 days. File the Employer’s Report of Work-Related Injury/Illness (Form C-2F) with the Workers’ Compensation Board and your carrier within 10 days of learning about an injury that causes lost time or needs more than first aid. A missing or late report can bring a fine of up to $2,500.
3. The employee files their claim. The worker files Form C-3 with the Board and has up to two years from the accident to do it.
4. Treatment starts. The employee sees a Board-authorized provider, who bills your carrier directly, not the employee and not you.
5. The carrier reviews the claim. It either pays or contests the claim. If there’s a dispute, the Workers’ Compensation Board decides.
6. Lost wages are paid. Benefits are two-thirds of the employee’s average weekly wage, adjusted for the degree of disability. For injuries on or after July 1, 2026, the maximum is $1,281.50 per week, and the minimum is $384.45.
7. The claim affects your E-Mod. Claims feed into your Experience Modification Rating for several policy years, and switching carriers doesn’t erase them. A return-to-work program that brings injured employees back on light duty is one of the best ways to keep that cost down.

Penalties for not having workers’ compensation insurance in New York

New York enforces its workers’ comp law aggressively. If you’re required to carry coverage and don’t, you face:

• Fines of up to $2,000 for every 10 days without coverage. These often pass $12,000 by the time the first penalty notice arrives.
• Stop-work orders that shut your business down immediately until you get coverage and pay the penalties.
• Criminal charges: a misdemeanor with fines of $1,000 to $5,000 if you have five or fewer employees, or a class E felony with fines of $5,000 to $50,000 if you have more.
• Personal liability: sole proprietors, partners, and corporate officers are personally responsible for every dollar of medical and wage benefits owed to an injured worker, plus legal costs.

A lapsed policy counts too. If a missed payment cancels your coverage, you’re treated the same as if you never had it. If you get a cancellation notice, call us right away.

How to get workers’ compensation insurance in New York

1. Choose between a private carrier and NYSIF. In New York you can buy from a private insurance company or from the New York State Insurance Fund (NYSIF), the state-run fund that competes with private carriers. NYSIF is also the insurer of last resort for businesses private carriers won’t write. A broker can compare both for you.
2. Gather your information. You’ll need your FEIN, estimated annual payroll broken down by job type, a description of what each employee does, any 1099 subcontractors and their certificates of insurance, and loss runs from the past 3 to 5 years if you’ve been insured before.
3. Compare more than price. Look at payment options like pay-as-you-go billing, credits for safety programs, the quality of claims service, and return-to-work support.
4. Get your certificate. Once coverage is bound, your carrier files proof with the Workers’ Compensation Board. Clients and general contractors will ask for your certificate: Form C-105.2 from a private carrier or Form U-26.3 from NYSIF.
5. Prepare for the premium audit. Keep payroll records, 1099s and subcontractor certificates organized. At audit, uninsured subcontractors can be added to your own payroll, which is one of the most common causes of a surprise bill.

Why use a broker for workers’ compensation insurance instead of buying online?

Instant-bind platforms are built to sell one product fast, not to manage your risk over time. Weinsurexyz works differently:

• Market access, not one carrier. We compare quotes from multiple carriers, including E&S/wholesale markets for harder-to-place risks, instead of routing you to whichever insurer owns the platform.
• Class code accuracy. Misclassified employees are one of the most common reasons small businesses overpay — or get hit with an audit bill. We check this before binding, not after.
• E-Mod management. We track your Experience Modification Rating year over year and flag when a claim or safety change is about to move your premium.
• Audit support. Premium audits are where surprise bills come from. We prep your payroll records and represent you through the audit, not just at renewal.
• Real underwriting background. Our team brings 20+ years of underwriting and carrier-side experience (including AIG and Chubb) to placement decisions — not a script.

Other coverage to consider alongside workers’ comp

• General liability insurance — covers third-party injury and property damage claims
• Commercial auto insurance — covers accidents involving business vehicles
• Business owner’s policy (BOP) — bundles general liability and property coverage
• Cyber liability insurance — covers data breach and cyber incident costs

Frequently asked questions about workers’ compensation insurance

Is workers’ compensation insurance required by law?

In nearly every state, yes — once a business hires its first employee, or in some states its second, third, or more. Requirements, exemptions, and penalties for non-compliance vary by state, so check your state’s workers’ comp board for the specific threshold that applies to you.

Do self-employed business owners need workers’ comp?

Not usually by law, but many sole proprietors and independent contractors buy a policy anyway — often because a client’s contract requires proof of coverage, or because a personal health plan won’t cover an on-the-job injury.

What’s the difference between general liability and workers’ comp?

General liability covers injuries to customers or other third parties on your property. Workers’ compensation insurance covers your own employees for job-related injuries and illness, along with the legal costs if an injured employee sues over unsafe conditions.

How can I lower my workers’ comp premium?

Correct employee classification, a documented safety program, and a clean claims history are the three biggest levers. An E-Mod review before renewal often catches errors that are quietly inflating your premium.

What happens during a workers’ comp premium audit?

Your carrier reviews actual payroll and job classifications at the end of the policy period and adjusts your premium to match what actually happened, versus the estimate used to set your original rate. Inaccurate estimates or misclassified employees are the most common source of a surprise audit bill.

Does workers’ comp cover illnesses, not just injuries?

Yes, when the illness is tied to workplace exposure — for example, repetitive strain injuries or occupational disease. Illnesses unrelated to the job aren’t covered.

Do 1099 contractors need workers’ comp?

In most states, businesses aren’t legally required to carry workers’ comp for true 1099 independent contractors. But if a contractor is misclassified — treated like an employee in practice — a state agency can reclassify them after an injury and hold the business liable for the claim. Many general contractors and staffing agencies also require subcontractors to carry their own policy before they’re allowed on a job.

Does an LLC need workers’ comp insurance?

It depends on the state and whether the LLC has employees. Single-member LLCs with no employees are often exempt, but requirements vary, and some states (particularly for construction trades) require coverage regardless of business structure. Multi-member LLCs and LLCs with W-2 employees typically need a policy.

What is a workers’ comp ghost policy?

A ghost policy is a minimum-premium workers’ comp policy issued to a business owner with no employees, purchased mainly to produce a certificate of insurance for a general contractor or client. The owner is usually excluded from coverage, so if they’re injured on the job, the policy pays nothing. It’s a compliance tool, not real protection — talk to a broker before assuming it covers you.

How much does workers’ comp cost per employee?

There’s no flat per-employee rate. Cost is driven by that employee’s class code (their job duties), their share of your total payroll, and your company’s E-Mod. A desk employee and a roofer on the same payroll can have wildly different costs even at identical salaries.

What happens if I don’t have workers’ comp and I’m required to carry it?

Penalties vary by state but commonly include stop-work orders, fines per employee per day of non-compliance, and personal liability for a workplace injury’s full medical and wage costs outside the workers’ comp system — meaning the business (and sometimes the owner personally) can be sued directly.

Get a workers’ compensation quote

Tell us about your business, and we’ll compare quotes across our carrier and wholesale markets — call (888) 540-7374 or email info@weinsurexyz.com.

New York Workers’ Compensation Cost Calculator