If you’re a business owner in New York with just one employee, you might be wondering whether you are required to carry workers’ compensation insurance. The short answer is yes — in New York State, almost all employers with even a single employee must provide workers’ compensation coverage. This law ensures protection for your employee if they suffer a work-related injury or illness, while also shielding your business from costly legal liabilities.

Understanding Workers’ Compensation in New York

Workers’ compensation is a no-fault insurance system designed to provide medical benefits and wage replacement to employees who get injured or ill on the job. In exchange for these benefits, employees give up their right to sue their employer for negligence related to the injury. This system creates a crucial safety net that benefits both workers and employers.

In New York, the workers’ compensation law applies to virtually all employers regardless of business size or industry. This includes part-time, temporary, seasonal, and casual workers. The New York State Workers’ Compensation Board explicitly states that businesses with even one employee must maintain workers’ compensation insurance from the first day that employee begins work.

Specifics for Businesses with One Employee

Whether your business has one full-time employee or just one part-time worker, the law mandates you provide workers’ compensation coverage. There are very limited exemptions, such as sole proprietors or single-owner partnerships with no employees at all, but once you hire your first employee, you must secure coverage.

Failure to comply can lead to significant penalties, including fines and potential lawsuits if an employee is injured without coverage. Additionally, New York employers are required to post notices of compliance in visible areas at their workplace and promptly report any work-related injuries to the Workers’ Compensation Board.

2025 Updates Affecting Workers’ Compensation in New York

Several recent changes affect workers’ compensation requirements and costs:

  • Minimum Wage Impact: As minimum wages rise, payroll-based insurance premiums also increase. For example, New York City’s minimum wage is $16.50 per hour in 2025, influencing worker compensation calculations.
  • Mental Health Coverage Expansion: New York now allows workers to claim benefits for work-related mental health conditions without proving extreme stress levels, broadening the scope of coverage.
  • Digital Processing: The New York State Insurance Fund (NYSIF) requires digital premium payments and application processes, easing administrative burdens but necessitating compliance.

Why You Should Have Workers’ Compensation Insurance

Besides being a legal requirement, workers’ compensation insurance provides essential protections:

  • Protects Your Employee: Medical treatment and lost wages are covered if your employee suffers a job-related injury or illness.
  • Limits Your Liability: Workers’ compensation generally bars employees from suing employers in civil court for work-related injuries.
  • Peace of Mind: Knowing your business is compliant shields you from legal and financial risks.
  • Builds Trust with Employees: Offering coverage demonstrates that your business values employee safety and well-being.

How to Get Workers’ Compensation Insurance in New York

Most employers purchase workers’ compensation insurance from private insurance carriers or the New York State Insurance Fund, which serves as a public insurer providing competitive rates. Some larger employers may qualify to self-insure but this involves meeting strict requirements and regulatory oversight. However, if you are also looking forward to get one, get a workers’ compensation quote today.

Protect Your Business and Your Employee Today

Don’t take risks with your business or your employees. If you have even one employee in New York, secure Workers’ Compensation insurance now to ensure compliance and protection. At Scautub Agency, we specialize in personalized insurance solutions tailored to meet your unique business needs. Contact us today for a comprehensive policy review and let our expert team help you find the best coverage at the most competitive rates. You can also call us directly at (518) 346-3427.

Also Read : Workers’ Compensation Insurance for Home-Based Business Owners

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Frequently Asked Questions (FAQs)

  1. Do I need workers’ compensation for part-time or temporary employees in New York?

    Yes. Any employee working for your business, whether part-time, temporary, or seasonal, must be covered under New York workers’ compensation law.

  2. What if I am a sole proprietor with no employees?

    Sole proprietors with no employees are exempt from carrying workers’ compensation insurance, but as soon as you hire an employee, coverage is mandatory.

  3. Can I cover myself under workers’ compensation if I am the business owner and only employee?

    Business owners who are sole shareholders and officers in a corporation with no other employees can sometimes opt out, but it is best to consult with an insurance specialist to understand your specific situation.

  4. What penalties can I face for not having workers’ compensation insurance in New York?

    Failure to obtain the required insurance can lead to fines, stop-work orders, and costly lawsuits if an employee is injured without coverage.