New YorkWorkers' Compensation Insurance Requirements (2026)

What New York Business Owners Need to Know

• •New York has some of the most expansive workers' comp requirements — nearly all employers must carry it
• •Penalties are severe: criminal charges plus fines up to $50,000
• •NYSIF is the state-operated competitive insurer — not monopolistic
• •Employers must post Form C-105 notice in the workplace
• •NY also requires disability benefits and paid family leave insurance
• •Subsequent violations are felonies, not just misdemeanors

• ✓Medical treatment — all authorized medical care for work-related injuries, including physician visits, hospital care, surgery, medications, and therapy
• ✓Temporary disability benefits — 66.67% of average weekly wage (up to $1,172/week) while unable to work during recovery
• ✓Permanent disability benefits — scheduled loss awards for specific body parts, or classified benefits (permanent partial or total disability) for other injuries
• ✓Vocational rehabilitation — retraining, education, and job placement assistance when the employee cannot return to their previous occupation
• ✓Death benefits — 66.67% of average weekly wage to dependents for the duration of dependency
• ✓Burial/funeral expenses — up to $12,500 for funeral and burial costs (one of the highest in the nation)
• ✓Mileage and travel reimbursement — reimbursement for necessary travel to medical appointments
• ✓Maintenance awards — ongoing benefits for employees undergoing vocational rehabilitation

1. 1Determine if you need coverage — check your state's requirements based on your employee count, industry, and payroll. Even if not required, coverage is strongly recommended.
2. 2Get your NCCI classification code — your business activity determines your classification code, which directly impacts your rate. Make sure you use the correct code for each type of work your employees perform.
3. 3Gather your payroll data — insurers need your estimated annual payroll broken down by job classification. Accurate payroll figures are essential for correct premium calculation.
4. 4Get quotes from at least 3 carriers — compare pricing from multiple insurance companies. Include your state fund (if available) and private carriers. An independent agent can help you shop multiple carriers at once.
5. 5Review policy terms and compare — look beyond the premium. Compare deductible options, payment plans (annual vs. pay-as-you-go), claims handling reputation, and any included safety services.
6. 6Bind the policy and post required notices — once you select a carrier, bind coverage immediately. Post the required workplace notice informing employees of their workers' comp rights and your carrier's information.
7. 7Set up payroll reporting — many carriers offer pay-as-you-go billing tied to your actual payroll. This avoids large upfront deposits and reduces audit surprises at year-end.

1. 1Employee reports the injury — the employee should notify you (the employer) of the injury as soon as possible, ideally in writing. Document the details: what happened, when, where, and any witnesses.
2. 2Provide the claim form — give the injured employee the required state claim form (e.g., DWC-1 in California) within 24 hours of learning about the injury. Keep a signed copy for your records.
3. 3Report to your insurer — notify your workers' comp insurance carrier immediately, typically within 24-48 hours. Most states require employer reporting within 3-10 days. Late reporting can result in penalties.
4. 4Direct the employee to medical care — send the employee to an approved medical provider or your Medical Provider Network (MPN). In emergencies, the employee can go to the nearest emergency room.
5. 5Insurer investigates and decides — your insurance carrier will investigate the claim, review medical records, and make a determination on coverage. They may accept, deny, or request additional information.
6. 6Manage the claim and offer modified duty — stay in contact with the injured employee. Offer modified or light-duty work when medically appropriate. This reduces claim costs and helps the employee recover.
7. 7Complete the return-to-work process — once the employee is cleared by their doctor, facilitate their return to full duty. Document the return and any work restrictions. Ensure the claim is properly closed with your carrier.

Frequently Asked Questions

Official New York Resources

• NY Workers' Comp Board
• New York State Insurance Fund (NYSIF)
• Employer Coverage Requirements
• Post Form C-105