New York Workers Compensation Insurance: Quotes From $35/mo

New York, the city that never sleeps, is a hub of commerce, innovation, and hard work. The beating heart of countless businesses, it’s essential to ensure the safety and security of the people powering these enterprises – the workers. New York workers compensation insurance is a vital safety net for employers and employees. This comprehensive guide delves into the intricacies of workers’ compensation in the Empire State. We will explore the significance of NYC Workers Comp, legal requirements, the benefits it offers, and, finally, help you find the best insurance providers that fit your unique business needs.

What is New York Workers Compensation Insurance?

New York workers compensation insurance is a lifeline for employees and employers alike. In the bustling and competitive landscape of New York, workplace accidents can happen. The state mandates this insurance program and provides crucial financial support to employees who suffer injuries or illnesses directly related to their work. 

It’s a system to ensure injured workers receive necessary medical treatment, wage replacement, and other critical benefits. This safeguards employees’ well-being and prevents businesses from facing potentially crippling financial liabilities in case of workplace incidents.


When Do You Need to Get Workers Compensation Insurance?

Understanding when your business needs to obtain New York workers compensation insurance hinges on familiarity with the state’s comprehensive workers’ compensation laws. In the state of New York, the law is clear: nearly all employers must carry workers comp insurance. 

The New York State Workers Compensation Board diligently oversees these regulations. It mandates that businesses, regardless of size, provide full or part-time insurance coverage to their employees. The exceptions are sole proprietors or business owners without employees and certain family members. Non-compliance with these regulations can lead to severe penalties, making businesses need to understand and adhere to the requirements.

  • Employing workers in New York: The foremost trigger for the need to acquire workers compensation insurance in New York is employing workers within the state. Whether your business is large or small, if you have employees working in New York, you are subject to the state’s workers compensation laws.

  • Full-time and part-time employees: New York’s workers comp laws make no distinction between full-time and part-time employees. Therefore, regardless of their work hours, all employees must be covered by workers compensation insurance. This includes seasonal workers and temporary staff.

  • Industry and type of work: New York’s workers comp laws apply broadly across various industries and types of work. Whether your business operates in construction, retail, hospitality, or any other sector, if you have employees, you are required to provide them with workers compensation coverage.

  • Sole proprietors and business owners without employees: While the mandate is comprehensive, exceptions exist. Sole proprietors and business owners who do not have employees are generally not obligated to carry workers compensation insurance. However, verifying your eligibility for this exemption is crucial to avoid potential legal issues.

  • Certain family members: In some cases, specific family members involved in the business may also be exempted from the NY state workers compensation insurance requirement. This exemption typically applies to immediate family members and can vary depending on individual circumstances.

  • Compliance and penalties: Non-compliance with New York’s workers compensation laws can lead to severe penalties. These penalties can encompass fines, lawsuits, and, in extreme cases, criminal charges. Therefore, it’s in the best interest of businesses to ensure strict adherence to the state’s requirements.


What Government Agency Oversees Workers Compensation Insurance in New York?

The New York State Workers Compensation Board assumes the pivotal role of overseeing and regulating the workers’ compensation system within the state. This agency serves as the authoritative body responsible for ensuring that the system operates fairly and efficiently to protect the interests of both employees and employers. A comprehensive understanding of the Workers Compensation Board is essential for businesses and individuals navigating the intricacies of New York workers compensation rules.


Functions and Responsibilities of the Workers Compensation Board

The functions and responsibilities of the workers compensation board are as follows:

  • Adjudicating claims: One of the primary functions of the Workers Compensation Board is to adjudicate workers’ compensation claims. This involves reviewing and making decisions on claims submitted by injured or ill employees, ensuring they receive the benefits to which they are entitled. The Board assesses the validity of claims, examines medical evidence, and determines the appropriate compensation.

  • Enforcing compliance with insurance requirements: The Board is crucial in ensuring employers adhere to New York’s workers compensation insurance requirements. It monitors businesses to verify their compliance with the mandate to provide insurance coverage to their employees. Non-compliance can result in penalties, and the Board takes measures to enforce these regulations.

  • Providing education and resources: Recognizing the complexity of workers compensation laws and regulations, the Workers Compensation Board is an educational resource for employers and employees. It offers guidance, information, and resources to help stakeholders understand their rights and responsibilities within the system. This educational outreach ensures that individuals are well-informed about the benefits and the steps required to access those benefits.

  • Mediating disputes: In cases where disputes arise between injured employees and employers or insurance carriers, the Board acts as a mediator. It facilitates discussions and negotiations to resolve disagreements and ensures that all parties are treated fairly. This mediation helps streamline the workers compensation process and reduce the burden on the legal system.

  • Monitoring and regulating insurance carriers: The Workers Compensation Board oversees insurance carriers that provide workers compensation coverage in New York. It monitors their financial stability and compliance with state regulations to ensure they can fulfill their obligations to injured workers. This oversight helps maintain the system’s integrity and provides confidence in the availability of benefits.

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Which Businesses Are Exempt from Getting Workers Compensation Insurance in NYC?

While most businesses in New York are mandated to provide workers comp insurance, certain exceptions apply. It’s prudent to conduct thorough research to determine if your business qualifies for an exemption. 

The New York State Workers Comp Board website or legal counsel can clarify this. Generally, sole proprietors, partnerships without employees, and some family-owned businesses may be exempt. However, verifying your eligibility for exemption is vital to avoid legal complications down the road. Here are the critical exemptions


Sole Proprietors

Sole proprietors, business owners operating without employees, are generally exempt from the requirement to obtain workers comp insurance NY. Since they do not have a workforce to cover, they are not compelled to purchase this insurance.


Partnerships Without Employees

Similar to sole proprietors, partnerships without employees are also typically exempt from the mandate to carry workers comp insurance. If a partnership does not have individuals on its payroll beyond the partners themselves, it is not required to provide coverage.


Family-Owned Businesses

Family-owned businesses present a unique scenario. In some cases, specific family members actively engaged in the business operations may be exempted from the ny workers compensation insurance requirement. These exemptions often apply to immediate family members, such as spouses, children, or parents, actively involved in the business’s day-to-day operations.


How Much Money Does NYC Workers Compensation Insurance Give?

New York workers compensation insurance offers various benefits to eligible employees who have experienced work-related injuries or illnesses. These benefits provide crucial financial support during challenging times. Let’s delve into the specific rates for each of these benefits:

  • Temporary partial disability benefits: These benefits are designed to assist employees who can work in a reduced capacity due to work-related injury or illness. Typically, Temporary Partial Disability Benefits amount to approximately 66.67% of the difference between the employee’s average weekly wage before the injury and their current wage while working with reduced capacity. This calculation seeks to bridge the financial gap for individuals who can still contribute to the workforce, but face reduced earnings due to their condition. It ensures that they receive compensation to help cover the shortfall in their income.

  • Temporary total disability benefits: In cases where employees are temporarily unable to work due to work-related injuries or illnesses, Temporary Total Disability Benefits come into play. These benefits usually constitute approximately 66.67% of the employee’s average weekly wage before the injury. However, it’s important to note that these rates are subject to a maximum and minimum weekly benefit amount determined by the state. This provision ensures that employees receive essential wage replacement during recovery, helping them meet their financial obligations while healing.

  • Permanent partial disability benefits: For employees who sustain permanent partial disabilities due to a workplace incident, the calculation of benefits is more intricate. New York utilizes a specific schedule to determine the number of weeks an employee is entitled to compensation based on the specific body part and the extent of disability. Each week is assigned a percentage value, and the employee receives benefits accordingly. This approach ensures that the level of compensation is commensurate with the degree of impairment, acknowledging the unique circumstances of each case.

  • Permanent total disability benefits: If an employee is left permanently and disabled due to a work-related injury, Permanent Total Disability Benefits offer ongoing support. Typically, these benefits amount to approximately 66.67% of the employee’s average weekly wage before the injury. However, like Temporary Total Disability Benefits, these rates are subject to the state’s maximum and minimum weekly benefit amounts. This financial assistance is crucial for employees who face a life-altering disability, ensuring they have the necessary means to navigate their new reality, including covering medical expenses and maintaining their financial stability.


How Long Will an Employee Wait Before Receiving Benefits?

The duration an employee must wait before receiving benefits under New York workers compensation insurance can vary depending on the specific circumstances of the claim. In most cases, workers can anticipate benefits shortly after reporting their injury or illness to their employer. However, the process may be subject to verification and approval by the Workers Compensation Board, aiming to ensure the claim’s legitimacy. Here’s an overview of the process:

  • Injury or illness: An employee sustains a work-related injury or illness, prompting the need for workers compensation benefits.

  • Report to employer: The employee notifies their employer about the injury or illness within 30 days of its occurrence, as mandated by state regulations.

  • Employer’s responsibilities: Upon receiving the employee’s report, the employer takes actions such as notifying the workers compensation insurance carrier and providing necessary medical care to the injured employee.

  • Filing a claim: The injured or ill employee formally submits a workers compensation claim, including relevant medical documentation and details of the incident.

  • Claim review: The insurance carrier reviews the submitted claim to assess its validity. The timeline for this step can vary depending on the complexity of the case.

  • Benefit payments: If the claim is approved, employees can expect to receive interim medical and wage benefits to support them during their recovery. In straightforward cases, this can happen within a few weeks.

  • Dispute resolution: In cases where disputes or challenges arise, the resolution process may extend the timeline for benefit receipt. Resolving these disputes can vary in duration.


Penalties for Not Getting Workers Compensation in NYC

New York imposes stringent penalties on employers who fail to provide the requisite workers comp insurance. These penalties encompass fines, potential lawsuits, and in severe instances, even criminal charges for non-compliance. Adherence to the NY workers compensation laws is not just advisable but imperative for businesses aiming to operate smoothly and ethically.

  • Fines: Employers who fail to provide NY workers compensation insurance coverage can face substantial fines. These fines can vary based on the severity of non-compliance and may increase for repeat offenses. The purpose of fines is to encourage employers to meet their legal obligations promptly.

  • Lawsuits: In cases where an employee is injured on the job and the employer does not have workers compensation insurance, the employee has the right to file a civil lawsuit against the employer. This can lead to significant financial liabilities for the employer, including compensation for medical expenses, lost wages, and potential punitive damages. Lawsuits can be costly and damaging to a business’s reputation.

  • Criminal charges: In severe instances of non-compliance, employers may face criminal charges. These charges can range from misdemeanors to felonies, depending on the circumstances. Criminal penalties can include fines, probation, or even imprisonment. Such consequences underscore the seriousness of failing to provide workers compensation coverage.

  • Stop-work orders: The New York State Workers Compensation Board has the authority to issue stop-work orders to non-compliant businesses. A stop-work order halts all business operations until the employer complies with workers compensation requirements. This can result in significant financial losses due to halted production and potential legal expenses to resolve the issue.

  • Loss of legal protections: Employers who do not provide NY workers comp insurance may lose certain legal protections. For instance, they may forfeit the ability to assert certain defenses in personal injury lawsuits brought by employees. This can make it more challenging and costly to defend against such claims.

  • Liability for employee medical expenses and compensation: Without workers compensation insurance, employers are directly responsible for covering their employees’ medical expenses and wage replacement in case of workplace injuries or illnesses. This can result in significant financial burdens, especially severe injuries or long-term disabilities.

  • Damage to reputation: Non-compliance with NY workers compensation laws can damage a business’s reputation, making it less attractive to potential employees, customers, and investors. It can signal a lack of commitment to employee well-being and legal compliance.

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NYC Workers Compensation Insurance Costs

Workers comp in New York costs $32 per month or $384 per year. To assist you in making an informed decision, here is a researched and compiled table of some of the best insurance providers:

Company Cost per Month Cost per Year Best for
NEXT $26 $312 Best overall; Fastest workers compensation insurance.
CoverWallet $28 $336 Comparing workers compensation insurance quotes online.
The Hartford $30 $360 Established businesses in search of a trusted insurance provider.
Tivly $32 $384 Comparing workers comp insurance quotes over the phone.
Thimble $32 $384 Small and growing businesses that value flexibility in their insurance options.
Hiscox $38 $456 Professional service businesses seeking specialized coverage solutions.


The cost of New York workers compensation insurance is subject to considerable variation depending on many factors. These factors include the nature of your business, the number of employees, and the historical claims record. Here are some of the factors:

  • Nature of your business: The type of industry and the nature of your business activities are fundamental factors influencing the cost of workers compensation insurance. Some industries inherently carry higher risks of workplace injuries, such as construction or manufacturing, which may lead to higher premiums. Conversely, office-based businesses with fewer physical hazards typically have lower premiums.

  • Number of employees: Your number of employees directly impacts your workers compensation costs. Larger workforces generally mean a higher potential for workplace accidents and injuries, which can result in higher premiums. Conversely, smaller businesses with fewer employees may pay lower premiums.

  • Historical claims record: Your business’s history of workers compensation claims significantly determines your insurance costs. If your business has a track record of frequent or severe claims, it may lead to higher premiums. Conversely, a clean claims history with few or no workplace injuries can lower premiums.

  • Experience modification rate (EMR): The EMR is a numerical representation of your business’s workers compensation claims history compared to other businesses in the same industry. A high EMR may lead to higher premiums, while a low EMR can save costs.

  • Classification code: NY workers compensation insurance providers use classification codes to categorize different job roles within a business. The classification code assigned to your employees reflects the associated risk level. For example, employees in high-risk jobs like roofing will have a different code than those in lower-risk roles, such as office administration.

  • Wage Levels: The wages you pay your employees also influence your workers compensation premiums. Generally, higher wage levels lead to higher premiums since compensation is based on a percentage of employee wages.

  • Safety measures and practices: Employers who implement robust safety measures and practices to prevent workplace injuries can often qualify for discounts on their workers compensation premiums. Demonstrating a commitment to safety through training, equipment maintenance, and risk management can lead to cost savings.

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Best NYC Workers Compensation Insurance Companies

Navigating the complex landscape of workers compensation insurance is a crucial task for businesses in the bustling heart of New York City. As the epicenter of commerce and industry, NYC presents unique challenges and opportunities for employers and employees. The choice of the right workers compensation insurance provider can make all the difference in ensuring your workforce’s well-being and your business’s financial stability. This guide will explore some of the best NYC workers compensation insurance companies, shedding light on their offerings, strengths, and how they can best serve your specific needs.


NEXT

Pros

  • Flexible coverage options to accommodate diverse needs.

  • Competitive rates that align with your business budget.

  • Streamlined online application process for convenience.

  • Purchase workers comp insurance 100% online.

  • Fast workers comp insurance.

  • Enjoy a 5% discount if you bundle workers comp with other policies.

Cons

  • Couldn’t find any.

NEXT emerges as a modern provider tailored to the unique demands of small businesses in New York. Their comprehensive workers compensation insurance offers flexibility to suit the requirements of different industries.

Best for: Best overall; Fastest workers compensation insurance. 

Average cost: $26 per month

Our rating: 9/10


The Hartford

Pros

  • An established reputation for reliability and trustworthiness.

  • An extensive range of coverage options to cater to diverse business needs.

  • Demonstrated financial stability.

Cons

  • Couldn’t find any.

The Hartford is a venerable insurance company with a rich history of providing dependable coverage. They offer a comprehensive selection of workers compensation insurance options to businesses operating in New York.

Best for: Established businesses in search of a trusted insurance provider.

Average cost: $30 per month

Our rating: 9/10


CoverWallet

Pros

  • An easy-to-navigate online application process.

  • Access to multiple carrier options for comprehensive coverage.

  • Transparent pricing, ensuring you understand the costs involved.

Cons

  • Not an insurance company but an insurance broker 

CoverWallet presents itself as an online platform that simplifies the insurance shopping experience. They offer access to a diverse range of insurance carriers, empowering businesses to compare and select the workers compensation insurance that aligns perfectly with their needs.

Best for: Comparing workers compensation insurance quotes online.

Average cost: $28 per month

Our rating: 10/10


Tivly

Pros

  • Specialized coverage options that address unique industry requirements.

  • Competitive rates ensuring affordability.

  • A strong focus on excellent customer service for added peace of mind.

Cons

  • Limited availability in certain regions may necessitate alternative providers.

Tivly specializes in workers compensation insurance catering to specific industries, offering tailored solutions to meet unique needs. Their commitment to customer satisfaction and competitive pricing make them an attractive choice for businesses. Call and talk with a representative now to compare workers compensation insurance quotes over the phone. 

Best for: Comparing workers comp insurance quotes over the phone.

Average cost: $32 per month

Our rating: 10/10


Thimble

Pros

  • A revolutionary approach with on-demand coverage for ultimate flexibility

  • Affordably priced options, making insurance accessible to a wide range of businesses.

  • A quick and seamless application process, saving time, and effort.

Cons

  • It may not be ideal for larger businesses with complex needs.

Thimble introduces the concept of on-demand workers compensation insurance, allowing businesses to adapt their coverage as circumstances dictate. Their streamlined application process ensures businesses can obtain the required coverage without unnecessary delays.

Best for: Small and growing businesses that value flexibility in their insurance options.

Average cost: $32 per month

Our rating: 9/10


Hiscox

Pros

  • Specialized coverage options tailored to professional service businesses.

  • Demonstrated financial stability that instills confidence.

  • Online quotes are available for easy access to information.

Cons

  • Customers may not receive full consulting insurance from Hiscox.

Hiscox specializes in providing insurance solutions for professional service businesses. While their coverage might not encompass all industries, they offer tailored workers compensation options designed to meet the unique needs of specific sectors.

Best for: Professional service businesses seeking specialized coverage solutions.

Average cost: $38 per month

Our rating: 9/10

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