How to obtain the best workers’ compensation insurance in New York? Workers’ compensation insurance protects New York businesses by covering medical expenses and lost wages if an employee is injured or becomes ill due to their job. It also provides employer liability coverage if the business is sued over a workplace injury. This coverage is not optional in New York—it’s required by law for most businesses with employees, whether they’re full-time, part-time, or family members.
Who needs workers’ Compensation in New York?
Nearly all employers in New York must carry workers’ compensation insurance, including:
- Businesses with one or more employees (part-time or full-time)
- Nonprofits with paid staff
- Contractors and subcontractors
- Employers in high-risk industries like construction or manufacturing
Sole proprietors and partners without employees are generally exempt, but they can choose to purchase coverage to protect themselves.
What does Workers’ Compensation Insurance in New York cover?
Workers’ compensation in New York helps pay for:
- Medical treatment for job-related injuries or illnesses
- Partial wage replacement for employees who are unable to work
- Disability benefits for temporary or permanent injuries
- Death benefits to the surviving family members in fatal cases
- Legal fees if your business is sued over a workplace injury
How does Workers’ Compensation Insurance work in New York?
If an employee is injured or becomes ill from work-related causes, workers’ compensation insurance in New York ensures they receive proper medical care and wage replacement. The employer’s insurance provider manages the claim, paying out benefits based on New York’s workers’ compensation laws.
New York State requires businesses to post notice of coverage (Form C-105) in the workplace and report injuries promptly.
What’s the cost of workers’ compensation in New York?
The cost of workers’ compensation insurance in New York depends on several factors:
- Industry and job risk level
- Number of employees and payroll
- Company claims history
- Safety protocols and training
Workers’ compensation insurance in New York can be an expensive cost of doing business. However, employers can take responsibility for those costs by following some of the tips below:
- Start getting quotes from a variety of insurance carriers through your agent. Do this several months before you need the policy.
- Make sure that the underwriter is using the proper classification of employees. If you misclassify your employees to get an initial lower rate, an audit will catch this, and you will be charged retroactively. You may also be subject to penalties and/or felony prosecution for misclassification of employees.
- Research the insurer’s claims handling practices. An insurer that either automatically pays every claim or controverts many claims can directly affect your premium in the future.
- Collect certificates of New York State workers’ compensation insurance from all subcontractors that are providing services to your business. Insurance carriers routinely charge general contractors workers’ compensation insurance premiums for all subcontractors not covered by their own New York State workers’ compensation insurance policies.
- Discuss what types of alternative plans are available (deductibles, premium credits, safety programs).
New York State offers premium credit programs to eligible employers. Check if any of these programs are available to you:
New York State Safe Patient Handling Act Program (NYSPHAP)
- The New York State Safe Patient Handling Act (Article 29-D, Title 1-A of the New York State Public Health Law) provides eligible health care facilities that comply with program requirements a credit of up to 2.5% on their workers’ compensation premiums.
- Health care facilities, as defined in Section 2997-h(1) of the New York State Public Health Law, such as hospitals, nursing homes, assisted living facilities, and alcohol and drug rehabilitation facilities, are eligible to participate.
- Additional information can be found on NYCIRB’s website on their New York Workers’ Compensation and Employers Liability Manual.
Construction Classification Premium Adjustment Program (CPAP)
- The New York Construction Classification Premium Adjustment Program (“Program” or “CPAP”) is a statutory program that provides premium credit to employers paying high wages in the construction industry. The goals of the program are to encourage employers in the construction industry to pay high wages and help employers paying high wages remain competitive when bidding for jobs.
- Detailed information about the program is available in NYCIRB’s Learning Center: Construction Classification Premium Adjustment Program (CPAP) | Policies and the 2025 publication, “Construction Classification Premium Adjustment Program Explained.”
Code Rule 60 Workplace Safety and Loss Incentive Program
- Code Rule 60 is a voluntary program that provides a premium credit to insured employers who are not in a recognized safety group with the New York State Insurance Fund, have an experience rating under 1.30, and pay annual NYS workers’ compensation premiums of at least $5,000.
- Eligible insured employers can apply for a credit if they implement one or more of the following programs: 1) safety incentive, 2) drug and alcohol prevention, or 3) return-to-work program.
- For more information, see the NYS Department of Labor’s Workplace Safety and Loss Prevention Incentive Program poster and the webpage on How to Apply for an Incentive Credit under Code Rule 60
Businesses in higher-risk industries, such as construction or transportation, generally pay higher premiums. On average, New York businesses pay between $2 and $4 per $100 in payroll, but rates can vary widely.
Penalties for non-compliance
Failing to provide workers’ compensation in New York can lead to severe penalties:
- Fines of up to $2,000 per 10-day period without coverage
- Lawsuits from injured workers
- Possible criminal charges in extreme cases
How to get workers’ comp insurance in New York
There are three main ways to obtain coverage:
- Private insurance carriers – Most businesses buy a policy from a licensed insurer.
- New York State Insurance Fund (NYSIF) – A state-run workers’ compensation insurance in New York that offers competitive rates.
- Self-insurance – Large businesses may apply to self-insure, but must meet strict financial requirements.
Get workers’ compensation insurance in New York that fits your business
Whether you’re a contractor, restaurant owner, or retail operator, having the right workers’ compensation insurance in New York helps protect your team and your business. Compare quotes from top carriers and get insured fast.
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