Navigating the complexities of New York State workers’ compensation rules can be a daunting task for employers, especially those in construction, manufacturing, and other high-risk industries. Whether you’re a general contractor, small business owner, or managing subcontractors, understanding your obligations under the law is essential. Failing to comply can result in steep penalties, legal issues, and business disruption.
In this guide, we’ll break down who must be covered under New York workers’ compensation insurance, the penalties for non-compliance, how to avoid them, and how BGES Group, a leading New York insurance agency, can help you stay protected and compliant.
Who Must Be Covered Under New York Workers’ Compensation Insurance?
New York State requires almost all employers to provide workers’ compensation insurance coverage for their employees. This rule applies regardless of the number of employees or whether they work part-time or full-time.
Here’s who must be covered:
- Employees: All full-time and part-time workers.
- Day laborers: Temporary hires for one-off jobs must be covered.
- Leased and borrowed employees: If you use a staffing agency, those workers still need coverage.
- Family members: If they are employed by the business, even unpaid.
- Domestic workers: Employed 40 or more hours per week.
- Volunteers: In certain organizations, especially municipalities or non-profits.
Subcontractors and Independent Contractors
Many employers are unaware that subcontractors and independent contractors may also need to be covered under your policy. In New York, if a subcontractor does not have their own valid workers’ compensation policy, the responsibility for coverage falls on the hiring contractor.
This means that:
- You must obtain and keep records of Form C-105.2 or CE-200 to prove a subcontractor has their own insurance.
- Without proof, your insurance carrier and the Workers’ Compensation Board may treat those subcontractors as your employees.
- You could face higher premiums, audits, or penalties for unreported workers.
To protect your business, always verify the workers’ compensation status of any subcontractor before work begins.
Penalties for Non-Compliance with Workers’ Comp Laws
The New York State Workers’ Compensation Board takes non-compliance very seriously. If you fail to provide proper coverage, you could face:
1. Financial Penalties
- $2,000 per 10-day period of non-compliance, per employee, even if no injury occurred.
- These penalties can accumulate quickly, reaching tens of thousands of dollars.
2. Legal Consequences
- Operating without insurance is considered a misdemeanor or even a felony, depending on the situation.
- Business owners and officers can be held personally liable.
3. Stop-Work Orders
- The state can issue a Stop Work Order (SWO) that halts your operations until proper coverage is provided.
- This can lead to missed deadlines, damaged reputation, and lost revenue.
How to Avoid Penalties and Stay Compliant
Avoiding penalties comes down to knowledge, organization, and partnering with the right insurance provider. Here are the steps to stay compliant:
- Purchase a valid workers’ compensation insurance policy that reflects your current number of employees and job classifications.
- Verify coverage for any subcontractors and keep documentation.
- Stay on top of audits. Carriers perform audits to ensure payroll and classifications are accurate. Report any changes immediately.
- Renew policies on time and never allow coverage to lapse.
- Work with a knowledgeable insurance agency, like BGES Group, that specializes in workers’ comp insurance in New York and knows how to protect your business.
Why Choose BGES Group for Workers’ Compensation Insurance in New York?
At BGES Group, we specialize in helping New York businesses navigate the complex world of workers’ compensation insurance. With over 45 years of experience, we are industry experts who understand the nuances of New York’s workers’ comp laws, particularly for contractors, subcontractors, and small businesses.
Here’s What We Do:
- Provide custom-tailored workers’ comp insurance policies to fit your unique needs and budget.
- Help you correct misclassifications that may be inflating your premiums.
- Offer solutions for high-risk businesses that may have difficulty finding affordable coverage.
- Assist in proving subcontractor coverage to avoid penalties and misclassification issues.
- Represent you during insurance audits to ensure you’re treated fairly.
- Work with top-rated insurance carriers that understand New York’s regulatory environment.
Our goal is simple: Save you money, protect your business, and keep you compliant.
We also help businesses:
- Lower their Experience Modification Rate (EMR)
- Get help if they’ve been non-renewed or canceled
- Find solutions for businesses with claims history or coverage gaps
Contact Information
BGES Group Your Trusted Partner for New York Workers’ Compensation Insurance
📍 Contact: Gary Wallach
📞 Phone: (914) 806-5853
📧 Email: bgesgroup@gmail.com
🌐 Website: www.bgesgroup.com
Final Thoughts
Staying compliant with New York State workers’ compensation laws is not optional—it’s a legal requirement that protects both your business and your employees. Whether you’re trying to get your first policy or need help navigating audits, classifications, or penalties, BGES Group is here to help.