New York

New York Workers' Compensation for LLCs

Complete 2026 guide to New York workers' compensation requirements for LLC owners — employee thresholds, premium ranges, owner exemptions, and penalties.

Is workers' comp required in New York?

Yes — 1+ employee (part-time OK)

Avg premium

$500-$3,500/yr/employee

Owner coverage

Sole proprietors + partners excluded; execs may opt out

Penalties for Non-Compliance in New York

$2,000/10-day period + criminal misdemeanor

How to Get Workers' Comp in New York

1
Determine if you need coverage
New York generally requires WC for 1+ employee (part-time OK).
2
Classify employees
Group by industry class code (NCCI or state equivalent). Each class has a base rate — office workers are cheapest; construction/roofing most expensive.
3
Get quotes from 3+ carriers
Rates vary 30%+ for identical coverage. The Hartford, Liberty Mutual, Hiscox, Next Insurance, Pie Insurance are common choices. State-run programs (OH/WA) are the only option in some states.
4
Choose deductible + policy limits
Higher deductible = lower premium but more out-of-pocket for smaller claims. Typical coverage limits: $100K/occurrence, $500K/aggregate, $1M disease limit.
5
Bind coverage before first day of work
Do not let a new employee start before the WC policy is active. A workplace injury in the gap = personal liability + state penalties.
6
Post state-required notice
Most states require posting a workers' comp notice in the workplace listing the carrier's name and claims contact info.
7
Renew annually + adjust for payroll
Premiums adjust based on actual payroll (audit at end of policy year). Underreport payroll = fraud risk; overreport = lose premium to refund.

FAQ

Does my New York LLC need workers' compensation insurance?

Yes, New York generally requires workers' comp for 1+ employee (part-time OK).

How much does workers' comp cost in New York?

$500-$3,500/yr/employee. Rate depends on industry class code (office: $300-$800; retail: $800-$2,500; construction: $3,000-$15,000 per employee annually). Premiums also vary by experience modifier (past claims history) and state-level fund vs private insurer.

Do LLC owners need workers' comp coverage for themselves?

Sole proprietors + partners excluded; execs may opt out. Sole proprietor LLC owners typically don't need to cover themselves, but if you hire even one employee, you usually must buy workers' comp. LLC members providing services may be treated as employees for WC purposes in some states.

What's the penalty for not carrying workers' comp in New York?

$2,000/10-day period + criminal misdemeanor. Beyond state fines, going uninsured makes you personally liable for 100% of any employee injury costs (medical, lost wages, disability) plus common-law damages. A single serious injury can exceed $100K-$500K.

How do I get workers' comp insurance for my New York LLC?

Shop multiple carriers — rates vary 30%+ for identical coverage. Major carriers: The Hartford, Liberty Mutual, Travelers, Hiscox, Next Insurance, Pie Insurance. Industry-specific: The Workers' Compensation Bureau (for high-risk), or state-run programs in OH/WA/WY/ND. Get quotes from 3+ carriers before buying.

Do I need workers' comp for 1099 contractors in New York?

Generally no — true independent contractors aren't covered by workers' comp (they're not employees). But misclassification is a big risk: if the state later reclassifies a 1099 as a W-2 (via IRS 20-factor test or state ABC test), you'll owe back WC premiums + penalties + potential injury liability. Carefully verify contractor classification — see our [W-2 vs 1099 guide](/blog/w2-vs-1099-worker-classification-llc).

Planning to hire in New York?

Read our complete first-hire playbook — loaded cost math, employer setup, workers' comp, payroll, and onboarding.

First hire playbook New York LLC hub

How to Get Workers' Comp in New York

Determine if you need coverage

New York generally requires WC for 1+ employee (part-time OK).

Classify employees

Group by industry class code (NCCI or state equivalent). Each class has a base rate — office workers are cheapest; construction/roofing most expensive.

Get quotes from 3+ carriers

Rates vary 30%+ for identical coverage. The Hartford, Liberty Mutual, Hiscox, Next Insurance, Pie Insurance are common choices. State-run programs (OH/WA) are the only option in some states.

Choose deductible + policy limits

Higher deductible = lower premium but more out-of-pocket for smaller claims. Typical coverage limits: $100K/occurrence, $500K/aggregate, $1M disease limit.

Bind coverage before first day of work

Do not let a new employee start before the WC policy is active. A workplace injury in the gap = personal liability + state penalties.

Post state-required notice

Most states require posting a workers' comp notice in the workplace listing the carrier's name and claims contact info.

Renew annually + adjust for payroll

Premiums adjust based on actual payroll (audit at end of policy year). Underreport payroll = fraud risk; overreport = lose premium to refund.