What insurance is required when hiring workers?

Required Insurance When Hiring Employees in New York

When hiring employees in New York, businesses must secure specific types of insurance to comply with state regulations and protect both the company and its workforce.

Key Insurance Requirements

• Workers' Compensation Insurance: New York mandates that all employers with one or more employees carry workers' compensation insurance. This coverage provides medical benefits and wage replacement to employees injured or ill due to work-related activities.
• Disability Benefits Insurance: Employers in New York are required to provide disability benefits insurance, which offers partial wage replacement to employees who are unable to work due to non-work-related illnesses or injuries.
• Unemployment Insurance: Although not a direct insurance purchase, employers must register with the New York Department of Labor to pay unemployment insurance taxes. This supports employees who lose their jobs through no fault of their own.

Additional Operational Considerations

• Liability Insurance: While not always mandatory, general liability insurance is advisable to protect your business from claims related to injury or property damage.
• Employee Classification: Properly classify workers as employees or independent contractors to ensure correct insurance coverage and tax compliance.
• Recordkeeping and Reporting: Maintain thorough records of insurance policies, employee information, and claims. Timely reporting to state agencies may be required.

As of 2026, ensure you verify current insurance requirements and compliance updates with the New York State Workers' Compensation Board and the Department of Labor to maintain operational compliance and avoid penalties.