Is my employer required to carry workers’ compensation insurance?

Nearly all employers within the state of New York are required by law to carry workers’ compensation insurance to protect workers who suffer on-the-job injuries. Coverage provides medical care and wage replacement benefits starting on the first day of employment, regardless of whether the employee’s error or inexperience contributed to their injury.

Exceptions to Coverage Rules

The primary exemptions to workers’ compensation coverage requirements in New York include:

1. A business that is not classified as a corporation and is owned by one person that has no employees, leased employees, borrowed employees, part-time employees, unpaid volunteers, or subcontractors
2. A business classified as a partnership with no employees, leased employees, borrowed employees, part-time employees, unpaid volunteers, or subcontractors
3. A business that is a one-or-two person owned corporation, with the individuals owning all of the stock and holding all offices of the corporation, that has no employees, leased employees, borrowed employees, part-time employees, unpaid volunteers, or subcontractors

How Coverage Is Purchased

In New York, most employers purchase workers’ compensation insurance through private insurance companies. However, there is also an option to purchase the necessary coverage through the New York Insurance Department or to self-insure.

The cost of providing workers’ compensation coverage varies depending upon the type of work employees perform. Workers with a higher risk of injury, such as those in the construction industry, are more costly to insure than those who are employed in a traditional office environment.

Penalties for Failure to Comply

Employers who do not have the required coverage face stiff penalties. They face a penalty of up to $2,000 per day as well as criminal fines that can be as high as $50,000. Additionally, they can be directly sued by an injured employee.

Protecting Your Rights as an Injured Worker

If you’ve suffered an on-the-job injury in New York, and you believe your employer does not have the correct workers’ compensation insurance coverage, you need an experienced workers' compensation attorney who can protect your rights. Call our office or fill out the contact form on this page to schedule a free, no-obligation initial consultation with O’Connor Law today.