Employers must obtain a workers' compensation insurance policy with a private insurance carrier, with the New York State Insurance Fund, or be self-insured. Businesses must show proof of workers' compensation coverage to a State or municipal agency when seeking a permit to do business. Only businesses that are legally exempt from providing workers' compensation coverage do not need to meet these requirements.
The workers' compensation system is a form of no-fault insurance. Employees are entitled to workers' compensation benefits for job-related injuries or illnesses without regard to fault as a cause of the injury. In turn, if a workers' compensation policy is in place, employees cannot sue employers for a work-related injury or illness in most cases. The type of business and total payroll determines the business' workers' compensation rate.
The Workers' Compensation Board can authorize employers as self-insured workers' compensation employers (generally, only very large corporations have the financial ability to become self-insured).
Contact the NYS Workers' Compensation Board for further information.