Who Needs Workers' Comp in New York?
New York Workers' Compensation Law Section 10 requires virtually all employers to carry workers' compensation insurance. This applies to for-profit businesses, nonprofits, and most domestic employers. Even hiring one part-time employee triggers the requirement. The only limited exceptions are certain sole proprietors with no employees and some specific family-run farm operations.
Severe Penalties for Non-Compliance
New York imposes some of the harshest penalties in the country for operating without workers' comp. Employers face a fine of $2,000 for every 10-day period they are uninsured. A first offense is a misdemeanor; repeat offenses are felonies punishable by imprisonment. The Workers' Compensation Board actively audits businesses, and employees can report uninsured employers directly. On top of penalties, uninsured employers are personally liable for the full cost of any employee injuries.
How New York Rates Are Set
New York has its own independent rating bureau — the New York Compensation Insurance Rating Board (NYCIRB) — which establishes classification codes and loss cost rates. While many codes resemble NCCI codes, New York has its own unique classifications and rate structures. Carriers apply their own multipliers to the NYCIRB loss costs, making it essential to compare quotes across multiple carriers.
Coverage Options in New York
New York employers have three options for obtaining coverage: private insurance carriers, the New York State Insurance Fund (NYSIF), or self-insurance (available to large employers who qualify). NYSIF operates as a competitive carrier and as the insurer of last resort, meaning it must offer coverage to any employer that cannot obtain it in the private market.
Common New York Class Codes
| Code | Description | Risk Level |
|---|---|---|
| 8810 | Clerical Office Employees | Low |
| 8742 | Outside Salespersons | Low |
| 8832 | Professional Services | Low |
| 9101 | Restaurant NOC | Medium |
| 5190 | Electrical Wiring — Within Buildings | Medium |
| 5403 | Carpentry NOC | Medium-High |
| 5551 | Roofing — All Kinds | High |