Navigating Workers’ Compensation Insurance in New York: What Every Business Owner Needs to Know

If you own a business in New York, understanding workers’ compensation insurance requirements is crucial. New York State has strict laws mandating that most employers carry workers’ comp coverage to protect employees in the event of a workplace injury. Failing to secure the proper insurance can result in significant financial penalties, legal consequences, and even criminal charges. This guide breaks down who is required to obtain workers’ compensation insurance, the repercussions of not carrying it, and how BGES Group can help you stay compliant.

Who Needs to Carry Workers’ Compensation Insurance in New York?

New York law requires nearly all businesses with employees to carry workers’ compensation insurance. This includes:

  • Corporations: If you operate a corporation and have at least one employee (even yourself as an officer performing work), you must have a policy.
  • LLCs and Partnerships: Any LLC or partnership with employees, regardless of whether those employees are family members, must have coverage.
  • Sole Proprietors: While sole proprietors without employees are not legally required to carry workers’ comp insurance, they have the option to purchase coverage for themselves.
  • Nonprofit Organizations: If your nonprofit has paid employees, workers’ compensation insurance is mandatory.

Exceptions to the Rule

Some business structures and employment arrangements are exempt from workers’ compensation insurance requirements in New York, including:

  • Independent contractors (provided they meet strict classification guidelines)
  • Unpaid volunteers
  • Certain real estate agents and clergy members
  • Sole proprietors with no employees

However, misclassifying employees as independent contractors can result in severe penalties, so it’s vital to ensure proper classification.

What Happens If You Don’t Have Workers’ Compensation Insurance?

Failure to obtain a required workers’ comp policy can have serious consequences. New York State aggressively enforces these laws, and penalties can quickly add up.

Fines and Penalties

If your business is found operating without mandatory workers’ compensation insurance, you may face:

  • Fines ranging from $1,000 to skies the limit: The Workers’ Compensation Board can impose a fine of $2,000 for every 10-day period without coverage.
  • Criminal charges: For businesses with five or more employees, failure to carry workers’ comp insurance can be prosecuted as a Class E felony.
  • Stop-work orders: The state can shut down your business until proof of insurance is provided.
  • Personal liability: If a corporation is found non-compliant, its officers can be held personally liable for claims and penalties.

What If an Employee Gets Hurt and You Have No Coverage?

A workplace injury can be devastating for both the employee and the employer—especially if you don’t have the legally required workers’ compensation insurance.

Direct Financial Liability

If an employee gets injured on the job and your business lacks workers’ compensation coverage, you are personally responsible for all medical bills, lost wages, and potential disability benefits. These costs can run into the hundreds of thousands of dollars, depending on the severity of the injury.

Lawsuits and Legal Consequences

An injured worker has the right to sue the employer for damages, including pain and suffering. Unlike in a properly insured claim where workers’ compensation laws limit liability, an uninsured employer may face a much larger financial burden from lawsuits.

State-Imposed Penalties

In addition to covering the injured worker’s medical expenses, your business will face substantial penalties from the New York Workers’ Compensation Board for non-compliance.

How BGES Group Can Help You Secure Workers’ Compensation Insurance

Navigating workers’ compensation laws in New York can be overwhelming, but BGES Group specializes in helping businesses obtain the proper coverage to avoid costly fines and legal issues.

Why Choose BGES Group?

  • Expert Guidance: BGES Group understands the complexities of workers’ comp laws and can help you determine the right coverage for your business.
  • Custom Solutions: They work with businesses of all sizes and industries to find policies that provide the best protection at competitive rates.
  • Fast and Easy Enrollment: Their team ensures a smooth application process so you can get insured quickly and stay compliant.
  • Ongoing Support: If you have questions or need to update your coverage, BGES Group is there to assist you every step of the way.

Contact BGES Group Today

If you need workers’ compensation insurance in New York, don’t wait until it’s too late. BGES Group can help you secure the right policy and keep your business compliant with state laws.

Conclusion

Ensuring that your business carries the required workers’ compensation insurance in New York is not just about compliance—it’s about protecting your employees and your company from financial disaster. The penalties for non-compliance can be severe, including hefty fines, lawsuits, and even criminal charges. By partnering with BGES Group, you can secure the right workers’ comp policy and safeguard your business from unnecessary risks. Contact Gary Wallach and his team today to get started!

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