Do businesses need workers compensation insurance before hiring?

Workers Compensation Insurance Requirement in New York Before Hiring

In New York, businesses must secure workers compensation insurance before hiring employees. This insurance is mandatory to cover medical expenses and lost wages for employees injured on the job.

Key Operational Steps

• Obtain Workers Compensation Insurance: Before onboarding any employee, arrange coverage through a licensed insurance carrier or the New York State Insurance Fund.
• Register with the New York State Workers' Compensation Board: Ensure your business is properly registered to comply with state reporting and recordkeeping requirements.
• Maintain Compliance: Keep your insurance policy active and updated as your workforce changes to avoid penalties and work stoppages.
• Integrate with Payroll and Hiring Processes: Verify coverage during employee onboarding to streamline compliance and avoid operational disruptions.

Additional Considerations

As of 2026, failure to have workers compensation insurance before hiring can result in fines, legal penalties, and potential business closure. It also protects your business from employee injury claims that could affect your financial stability.