When do I need to buy Worker’s Compensation in New York

When do I need to get Worker’s Comp

As a business owner in the State of New York, you may cringe when thinking about Worker’s Compensation.

But one thing is imperative, you need to know and understand when you are required to carry Worker’s Compensation and make sure you do so.

If you have employees, you are required to carry worker’s compensation coverage.

Worker’s compensation coverage protects if your employees are injured while on the job. It will cover the medical expense and partial lost wages.

Who is considered an employee

Full-time and part-time employees that are on your payroll are required to be covered under your worker’s compensation coverage.

But, most people don’t realize that people that are asked to do a job could fall under the guidelines of who needs to be covered.

These can include:

  • Day Labor
  • Leased employees
  • unpaid volunteers
  • family members

If you are a true sole proprietor, meaning you have no employees are work 100% by yourself, you are not required to carry Worker’s Compensation in NY.

The gray area surrounding this topic has to do with independent contractors.

Independent Contractors

If you hire independent contractors to help you and your company do a job, you must have the practice to ask for proof of Worker’s Compensation coverage.

We see situations a lot where independent contractors are also sole proprietors. When that independent contractor works directly for themselves they are not required to have worker’s compensation but if they want to work for another business or organization, then they do.

This is when you need to review to NY State’s guide to Independent Contractors. The main three factors they look at are:

  • Is there supervision and direction
  • Control in the performance
  • Use of tools, material, and equipment

What’s Next?

Before you start paying employees or hiring independent contractors make sure you discuss with your insurance agent to make sure you do not need coverage first. Failure to have worker’s compensation in place before you start paying your employees can result in large fines from the New York’s Workers Compensation Board.

If you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.


Mike Crowley

Hi I'm Mike! I am the Vice President of Crowley Insurance Agency. I am here to help any way I can. Please reach out and contact me for anything you need and be sure to connect with us on social as well :)


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