Short answer. Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders. Construction: A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test.
At a glance
- Who must carry it
- Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders.
- Construction
- A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test.
- Farms
- Farms with employees must carry it; a farmer's spouse and minor children don't count.
- Domestic workers
- Required for a domestic worker employed 40 or more hours a week by the same employer.
- Owners and officers
- A sole proprietor with no employees doesn't need it; LLC members and partners aren't employees for this purpose. Each may cover themselves voluntarily. A one- or two-person corporation owned and run by those people needs no coverage.
- Independent contractors
- Construction and commercial goods transportation have two-part tests; other industries weigh factors such as freedom from direction or control. A business can't make its employees buy their own policy.
- Going without
- Up to $2,000 for every 10 days without coverage, a stop-work order, and a misdemeanor (five or fewer employees) or class E felony (more than five) with fines up to $50,000.
- Workplace notice
- Post notice of coverage at each place of business (WCL section 51).
- Check a policy
- Use the Board's 'Does Employer Have Coverage?' search. Open the lookup
- Agency
- New York State Workers' Compensation Board
In the agency's words
The rule
"Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3)."
Construction
"is presumed to be the employee of that contractor for the purposes of workers' compensation."
Farms
"Workers' compensation insurance is required for all farms who have employees."
Domestic workers
"if the domestic worker is employed forty or more hours per week by the same employer."
Owners
"Workers' Compensation coverage is required if the corporation has more than two corporate officers or more than two shareholders."
Contractors
"A business cannot require employees working for that business to obtain their own workers' compensation insurance policy."
Going without
"The penalties for noncompliance can be as high as $2,000 for every 10-day period without coverage."
Notice
"Employers must post notice of coverage in their place(s) of business (WCL §51)."
Three example businesses
What the stated rule says for three common setups:
- 2 employees, most businesses (not construction), llc: Required for most employers. See why
- 4 employees, construction, corporation: Required. See why
- 6 employees, most businesses (not construction), sole proprietor: Required for most employers. See why
Your own numbers: open the checker for New York.
Not stated on the pages we read: self-insurance.
Official sources
- Is Workers' Compensation Coverage Required? (NY Workers' Compensation Board) (checked November 2026)
- Violations of Workers' Compensation Law (NY Workers' Compensation Board) (checked November 2026)
General information, not legal or insurance advice; we are not lawyers or insurance agents. Rules as published on the pages above, checked November 2026. We don't recommend or sell any insurer; the agency or a licensed agent can say how a rule applies to your business.
Common questions
Who has to carry workers' comp in New York?
Virtually all employers must cover their employees (WCL sections 2 and 3). A corporation needs coverage once it has more than two officers or more than two shareholders. The agency puts it as "Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3)."
Is the rule different for construction in New York?
Yes. A worker injured while doing work for a contractor is presumed to be the contractor's employee, and construction has its own two-part independent contractor test.
Do owners and officers need coverage in New York?
A sole proprietor with no employees doesn't need it; LLC members and partners aren't employees for this purpose. Each may cover themselves voluntarily. A one- or two-person corporation owned and run by those people needs no coverage.
What about independent contractors in New York?
Construction and commercial goods transportation have two-part tests; other industries weigh factors such as freedom from direction or control. A business can't make its employees buy their own policy.
What happens to a New York employer with no coverage?
Up to $2,000 for every 10 days without coverage, a stop-work order, and a misdemeanor (five or fewer employees) or class E felony (more than five) with fines up to $50,000.
What notice must a New York employer post?
Post notice of coverage at each place of business (WCL section 51).
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