Quick answer
In New York, almost every business with even one employee, full-time, part-time or family, must carry workers' compensation, plus disability benefits (DBL) and Paid Family Leave (PFL). Contractors feel it most: the NYC Department of Buildings and other permit offices require proof of coverage (or a CE-200 exemption) before they issue a permit, and GCs will not let an uninsured sub on site. Working without it can cost up to $2,000 for every 10 days uncovered, plus a stop-work order. Your price is driven by your class codes, payroll and experience mod, and New York loss costs dropped an average of 21.9% for policies starting on or after October 1, 2026. We place NY comp, DBL and PFL together, with proof ready for your permit or GC.
Get a quote · 754-337-9710 · adolfo@nextguardinsurance.com · WhatsApp
Fastest way to a quote: email your current policy or expiring quote, payroll by class code (or by trade and job title), five years of loss runs and your NYCIRB experience mod if you have one to adolfo@nextguardinsurance.com. One complete submission moves faster than ten phone calls.
Please send your account to one broker. When several brokers submit the same account to the same markets, the account gets blocked and quotes slow down.
New York's Workers' Compensation Law covers nearly every employer. If you have one or more employees, including part-time workers, day laborers and family members on payroll, you need a policy. The main exceptions for contractors:
An exemption is not coverage. Many GCs and owners still require a policy before you step on their job, even if you work alone. That is where a minimum-premium policy (sometimes called a "ghost policy") comes in.
New York's Construction Industry Fair Play Act presumes that people doing construction work for you are employees unless they pass a strict independence test or run a genuinely separate business. The Workers' Compensation Board and premium auditors apply their own scrutiny too. And under Workers' Compensation Law §56, a contractor can be liable for comp benefits owed to the employees of an uninsured subcontractor.
In practice: collect a valid certificate from every sub, keep it on file, and expect the auditor to charge you for any sub who cannot prove coverage.
New York employers with one or more employees on at least 30 days in a calendar year must also provide statutory disability benefits (for off-the-job illness or injury) and Paid Family Leave. They are a separate policy from workers' comp, priced per employee, and employees can contribute part of the cost through payroll deductions within state limits.
Permit offices ask for proof of both. We quote DBL and PFL with your comp so the certificates arrive together.
| Form | What it proves |
|---|---|
| C-105.2 | Workers' comp coverage through a private insurer |
| U-26.3 | Workers' comp coverage through the state fund |
| DB-120.1 | Disability and Paid Family Leave coverage |
| CE-200 | Exemption from comp and/or DBL/PFL for businesses with no employees |
The Workers' Compensation Board does not accept an ACORD certificate as proof for permits and licenses. The insurer issues the state form directly to the permit office or GC listed as certificate holder. Tell us who needs it when you bind.
| Factor | Why it matters |
|---|---|
| Class codes | Each trade has its own loss cost set by the New York Compensation Insurance Rating Board (NYCIRB). Masonry, concrete and carpentry price far above electrical or plumbing. |
| Payroll | Premium is charged per $100 of payroll in each class, then trued up at audit. |
| Experience mod | Your NYCIRB experience rating compares your claims to your class. Below 1.00 lowers your price; above 1.00 raises it. |
| Wage credit | New York's Construction Classification Premium Adjustment Program can credit contractors who pay higher hourly wages in eligible construction classes, calculated from audit data. |
| Claims and safety | Loss runs, return-to-work programs and safety records move underwriters on pricing and eligibility. |
| Subcontractor controls | Uninsured subs added at audit are the most common surprise bill. |
The October 2026 change: New York approved an average 21.9% decrease in workers' comp loss costs for policies written or renewed on or after October 1, 2026. It is a statewide average across all classes, so your codes may move more or less. Details in what the October 2026 rate decrease means for your renewal.
Your premium starts as an estimate. After the policy year, the carrier audits actual payroll by class and any subcontractor costs. Misclassified employees, overtime not separated out, and subs without proof of coverage all turn into an additional bill. Keep payroll records by class, separate overtime premium pay, and collect sub certificates before work starts.
Workers' comp is your injured employee's exclusive remedy against you, but it does not stop him from suing the owner or GC under Labor Law 240 or 241(6), and that lawsuit can come back to you. How far it reaches depends on grave injury and Workers' Comp Law §11. The general liability side is covered on our NY Labor Law insurance page.
We submit your account once, complete, to the markets that write your trades in New York, including the state fund where it makes sense, and show you the options side by side: comp, DBL and PFL together. For new ventures and contractors with a short history, we can also discuss pay-as-you-go billing tied to payroll, so the deposit stays small and audits stay clean.
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Yes. New York requires nearly every employer with one or more employees, including part-time workers and family members on payroll, to carry workers' compensation. Employers with one or more employees on at least 30 days in a calendar year must also provide disability benefits and Paid Family Leave.
A sole proprietor or partnership with no employees is not required to cover itself and can file a CE-200 exemption. But many general contractors and owners still require a workers' comp policy before you can work on their job, so solo contractors often buy a minimum-premium policy anyway.
The Workers' Compensation Board can assess up to $2,000 for every 10-day period without coverage, issue a stop-work order, and pursue criminal charges. Sole proprietors, partners and corporate officers can be held personally liable.
Permit offices accept the state forms, not an ACORD certificate: C-105.2 or U-26.3 for workers' comp, DB-120.1 for disability and Paid Family Leave, or a CE-200 exemption if you have no employees. Your insurer issues them directly to the agency.
Premium is a rate per $100 of payroll for each class code, based on loss costs set by the New York Compensation Insurance Rating Board, then adjusted by your experience mod, any construction wage credit and the insurer's own factors. The final premium is set by audit after the policy year.
Yes. New York approved an average 21.9% decrease in workers' comp loss costs for policies written or renewed on or after October 1, 2026. It is an average across all classes, so your class codes may change more or less.
Potentially, yes. Under Workers' Compensation Law §56, a contractor can be liable for comp benefits owed to employees of an uninsured subcontractor, and your auditor will usually add uninsured sub costs to your payroll. Collect valid proof of coverage from every sub before they start.
Often, yes. Pay-as-you-go programs bill premium with each payroll run instead of a large upfront deposit, which helps cash flow and reduces audit surprises. Availability depends on your class codes and payroll provider.
Yes, hablamos español. We explain classifications, audits and certificates in Spanish or English.
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