Workers Compensation

Workers’ Compensation Insurance in New York

Workers’ compensation isn’t optional in New York—if you have employees, you’re required to carry it. But there’s a wide range between the minimum you need to be compliant and the coverage that actually protects your business and your employees. We help you find the right policy at a competitive rate and stay on top of your costs year to year.

New York Workers’ Compensation Requirements

New York State requires virtually all employers to carry workers’ compensation insurance, regardless of company size. The only common exceptions are sole proprietors with no employees and certain corporate officers who elect to exclude themselves. If you’re in construction, compliance is enforced especially closely—contractors without certificates can’t legally work on most job sites and can face significant penalties.

New York also requires separate Disability Benefits Law (DBL) coverage and, since 2018, Paid Family Leave (NYPFL) insurance as part of your DBL policy. These are often combined into one policy but represent distinct protections. We handle all three—workers’ comp, DBL, and NYPFL—as an integrated program.

Non-compliance carries real penalties. Operating without workers’ comp insurance can result in fines, criminal liability, and personal liability for the business owner if an employee is injured.

What Workers’ Compensation Covers

• Medical expenses — All reasonable and necessary medical treatment related to a work injury, with no deductible or copay for the employee. This includes emergency care, surgery, ongoing treatment, and rehabilitation.
• Lost wages — Two-thirds of the employee’s average weekly wage during periods of disability (subject to state maximum benefits). This is a significant benefit—if an employee is out for three months, they’re covered for two-thirds of their income the entire time.
• Permanent disability benefits — If the injury results in lasting impairment, scheduled loss of use awards or ongoing benefits depending on the type of disability. Loss of arm, loss of eye, etc. have defined benefit schedules under New York law.
• Death benefits — Payments to surviving dependents if an employee dies from a work-related injury or illness. Funeral expenses and ongoing income replacement for spouses and children.
• Employer’s liability — Covers lawsuits brought against you by injured employees in situations outside the standard WC system. This is “Part Two” of your workers’ comp policy and is critical.

Experience Modification Rate (EMR) & Your Premium

Your EMR (experience mod) is the number that most directly affects what you pay for workers’ comp year to year. It’s calculated by the Workers’ Compensation Board using your claims history relative to other businesses in your industry classification. An EMR above 1.0 means you pay more than average. Below 1.0, less.

If your EMR is 1.20, for example, you pay 20% more than the baseline rate for your industry. If it’s 0.85, you pay 15% less. For a business with a $100,000 payroll, a difference of 0.35 in your EMR equals thousands of dollars annually.

We review your loss runs annually and help you identify patterns—injury types, departments, circumstances—where targeted interventions reduce future claims. We also help you understand how your classification affects your EMR and whether reclassification makes sense as your business changes.

Over time, good safety practices and low claims history create a favorable EMR. This is how you get to below-average rates.

Claims Advocacy & Loss Prevention

When a claim is filed, the insurance company’s goal is to manage their costs. Your goal is to get your employee back to work and keep the claim from dragging on. Those aren’t always aligned. We stay involved in open claims, push back on delays, and connect you with occupational health and modified duty programs that help move employees toward return-to-work faster.

We also help you implement loss prevention programs—safety training, hazard reduction, ergonomics—that actually reduce claims. This is especially important in construction and manufacturing where injury risk is highest.

Policy Classification & Payroll Audit

Workers’ comp premiums are based on payroll by job classification. Misclassified employees are one of the most common sources of premium overpayment. If your workforce has changed—new roles, contractors vs. employees, seasonal variation—there’s a good chance your policy classifications haven’t kept up.

We review this as part of every renewal and also after significant business changes. We’ve often found that proper reclassification saves our clients substantial money without changing anything else about their operation.

Construction Industry Specifics

Construction has unique workers’ comp requirements in New York. General contractors and specialty contractors face different classification rules, experience rating formulas, and compliance requirements. Importantly, if a subcontractor you hire doesn’t carry their own workers’ comp, you may be liable for their injuries as if they were your employees. This is one reason we push hard on getting certificates of insurance before work starts.

We also understand New York’s construction-specific classifications, the impact of equipment operation on your rates, and how to navigate the Workers’ Compensation Board’s audit process for contractors.

Frequently Asked Questions

Can I exclude myself as an owner?

Sole proprietors are automatically excluded from workers’ comp requirements in New York. Corporate officers can elect to be excluded through the “corporate officer exclusion” form. This reduces your premium basis by removing your payroll from the calculation. Whether that makes sense depends on your personal health coverage and risk tolerance. If you’re injured and not covered, you have no wage replacement protection or medical benefits. We walk through the tradeoffs with each client.

What if a subcontractor I hire doesn’t have coverage?

In New York, if a subcontractor you hire doesn’t carry their own workers’ comp, you may be liable for their injuries as if they were your employees. This is especially enforced in construction. Always get a current Certificate of Workers’ Compensation Insurance before work starts. We can help you verify coverage and understand what to do if a subcontractor can’t provide it.

Our claims have been low. Can we get a better rate?

Possibly. Low claims translate to a favorable EMR, which reduces your rate as a percentage. We also shop your coverage at renewal—even with a good EMR, different carriers price the same risk differently depending on their book of business and appetite for your industry. We can often find better rates even for low-claim businesses.

How is my disability benefits and paid family leave insurance different from workers’ comp?

Workers’ comp covers work-related injuries and illnesses. Disability Benefits Law (DBL) and Paid Family Leave (NYPFL) cover non-work-related disabilities (illness, accident, pregnancy) and family leave situations (child birth, adoption, family illness care). DBL/NYPFL is separate but is usually bundled with your workers’ comp policy for simplicity.

What happens if I get audited?

Workers’ Compensation audits are common—carriers typically audit a percentage of their policyholders annually. They review your payroll, your employee classifications, and your business operations to verify you’ve been classified correctly and paying the right premium. If they find discrepancies, you get a supplemental premium or a credit. We can represent you in the audit process and help ensure your classifications are correct.

What if an employee is injured off-site or on break?

It depends on the circumstances. If an employee is injured during paid time off or on break at your workplace, that’s typically covered. If they’re off-premises and not working, coverage is usually not available. The Workers’ Compensation Board looks at whether the employee was acting on your behalf or solely for their own benefit.

Can I reduce my workers’ comp costs?

Yes. The main levers are: (1) maintaining a good safety record to keep your EMR low; (2) accurate payroll reporting and classification so you don’t overpay; (3) managing claims actively to get employees back to work faster; and (4) shopping competitively at renewal. We do all of this as part of our standard service.

Let’s Review Your Coverage

Workers’ compensation is complex in New York, with lots of moving parts—EMR calculations, DBL/NYPFL integration, construction-specific rules, audit management. You need a broker who understands these details and stays on top of them year-round. We do that so you can focus on running your business.

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Employee Benefits | Commercial Insurance | Life Insurance | Professional Liability