Is Workers Comp Insurance mandatory for all the employees in New York?

The New York upholds the strict requirement for employers. All the employers are needed to carry out worker’s compensation insurance for their employees in New York. According to the law, there are very rare instances wherein the employers are exempted from this requirement. These situations include the following criteria.

  • The business is owned by an individual with no employees, borrowed employees, leased employees, part-time employees, unpaid volunteers or subcontractors working under him.
  • Based on the above specification and the business is owned by partners or corporation and has no employees.
  • When there are no additional employees and the business is owned by one or two people, and those people own all stock and offices.

People who are paid to do the job are considered as the employees of the organization. And these employees are required to be covered under Worker’s comp Insurance in New York. An exemption is given to the independent contractor who fulfils the following criteria.

  • While performing the job the contractor is not in control and direction of the employers.
  • The contractor is providing a service that the organization does not do in its normal course of business.
  • In relation to the service being performed, the contractor has independently established occupation, trade or business.

The Average cost for Worker’s Comp Insurance

It is mandatory to be classified by an employer code in order to get Workers Comp insurance in New York. The state’s authentic system of coding that determines the level of risk for various occupations is done by the New York Compensation Insurance Rating Board (NYCIRB).

Those whose occupation is at higher risk, like for instances those involved in the construction business will have a higher rate for coverage than someone whose job is less likely to cause injury, i.e. someone doing a desk job. The average cost of Worker’s Comp Insurance in New York for the same is around $0.98 per $100 in wages.


When an employee faces any injury or if there is demise, as a result of work, his or her dependent are liable to receive Worker’s Comp death benefits. The spouse and minor children are classified as a primary dependent in New York. They receive the benefits throughout their life until he or she remarries. A lump sum of two years of benefits is delivered if the spouse remarries someone. The spouse receives 66.67% of the deceased weekly wage up to the statutory maximum.

In case of having children the rate shall remain, and the benefits are divided in a way that 36.6% of the weekly wage is given to the spouse and the children equally split the remaining 30%. Children’s benefits end when they reach 18 years, or 23 years if they are a full-time student. In cases wherein there is no spouse or children, the benefits are shared with the deceased parents or estate. New York also provides up to $6,000 as a funeral expense under the worker’s compensation benefits.

Remember, there are penalties if the New York requirement is not met. It can result in serious criminal and civil penalties.   

Author’s Bio

Shankaran B. runs his own business insurance company in the city of New York. He provides online assistance to all the people who face difficulties while setting up their business abiding all the laws. He has helped many and looks forward to expanding his company to benefit a lot more. He is an intelligent and knowledgeable person in his field having 26+ years of experience