New York small business insurance requirements: workers' compensation, disability benefits, Paid Family Leave and auto minimums

New York: what the state requires of a small business

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In New York, virtually every employer with employees must carry workers' compensation, statutory disability benefits (DBL) and Paid Family Leave coverage — three policies, often bought together. Vehicles must carry at least 25/50/10 liability with 50/100 for death, plus no-fault personal injury protection and uninsured motorist coverage. Liquor licensees face Dram Shop liability, and New York City licenses home improvement contractors separately.

Reviewed by CoverMatch licensed agents, Licensed property & casualty agents · Reviewed Oct 11, 2026 Updated Oct 30, 2026

New York rules with sources
Topic	The rule in New York	Source
Workers' compensation	Required of virtually all employers with one or more employees, including part-time, family members and most corporate officers; for-profit businesses with employees must insure through a private carrier, the State Insurance Fund or approved self-insurance.	Workers' Compensation Law §§ 2, 3, 10 and 50; NY Workers' Compensation Board
Disability benefits (DBL)	Employers with one or more employees working in New York must provide statutory disability benefits coverage for off-the-job injury and illness, after thirty days of employment.	Workers' Compensation Law Article 9; NY Workers' Compensation Board
Paid Family Leave	Paid Family Leave coverage is required of the same employers and is provided as a rider to the disability benefits policy, funded by employee payroll deductions.	Workers' Compensation Law Article 9; NY Paid Family Leave
Penalty for being uninsured	The Board assesses penalties for each ten-day period without workers' compensation coverage and may issue stop-work orders; uninsured employers are personally liable for benefits.	Workers' Compensation Law § 52
Auto liability minimums	Bodily injury $25,000 per person / $50,000 per accident, $50,000 / $100,000 for death, property damage $10,000, plus $50,000 of no-fault personal injury protection and uninsured motorist coverage, for vehicles registered in New York.	Vehicle and Traffic Law § 311; Insurance Law § 5103; NY DMV
Liquor licensees	No statutory insurance minimum for a State Liquor Authority license, but licensees are liable under the Dram Shop Act for injuries caused by persons unlawfully served, which liquor liability insurance answers.	General Obligations Law § 11-101

Topic

The rule in New York

Source

Workers' compensation

Required of virtually all employers with one or more employees, including part-time, family members and most corporate officers; for-profit businesses with employees must insure through a private carrier, the State Insurance Fund or approved self-insurance.

Workers' Compensation Law §§ 2, 3, 10 and 50; NY Workers' Compensation Board

Disability benefits (DBL)

Employers with one or more employees working in New York must provide statutory disability benefits coverage for off-the-job injury and illness, after thirty days of employment.

Workers' Compensation Law Article 9; NY Workers' Compensation Board

Paid Family Leave

Paid Family Leave coverage is required of the same employers and is provided as a rider to the disability benefits policy, funded by employee payroll deductions.

Workers' Compensation Law Article 9; NY Paid Family Leave

Penalty for being uninsured

The Board assesses penalties for each ten-day period without workers' compensation coverage and may issue stop-work orders; uninsured employers are personally liable for benefits.

Workers' Compensation Law § 52

Auto liability minimums

Bodily injury $25,000 per person / $50,000 per accident, $50,000 / $100,000 for death, property damage $10,000, plus $50,000 of no-fault personal injury protection and uninsured motorist coverage, for vehicles registered in New York.

Vehicle and Traffic Law § 311; Insurance Law § 5103; NY DMV

Liquor licensees

No statutory insurance minimum for a State Liquor Authority license, but licensees are liable under the Dram Shop Act for injuries caused by persons unlawfully served, which liquor liability insurance answers.

General Obligations Law § 11-101

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Workers' compensation, DBL and Paid Family Leave in New York

New York asks more of employers than most states: workers' compensation for on-the-job injuries, disability benefits for off-the-job disability, and Paid Family Leave as a rider to the disability policy. All three are required from the first employee, enforcement is active, and penalties accrue per period of non-coverage. The State Insurance Fund writes coverage for employers who cannot find it in the private market.

Auto liability in New York

New York's minimums include the 25/50/10 liability limits, higher limits for death, no-fault personal injury protection and uninsured motorist coverage. Business vehicles carry more in practice; New York City platforms and fleets frequently require $1M combined single limits.

Contractors and licensees in New York

Statewide, New York does not license general contractors, but New York City and many counties license home improvement contractors and require insurance. Electrical and plumbing licensing is local. Liquor licensees carry Dram Shop exposure under the General Obligations Law.

How CoverMatch uses these rules

A New York business in the wallet is checked for workers' compensation, DBL and Paid Family Leave once employees are reported, and for auto limits on scheduled vehicles. Each rule links to its source; a licensed agent reviews this page before publication and when the rules change.

Sources

Questions people actually ask

I run a one-person New York corporation. Do I need all three coverages?

A corporation with one or two officers who own all the stock and no other employees may be exempt from workers' compensation and DBL; the moment you add an employee the requirements apply. Confirm the exemption with the Board or a licensed agent.

Can I buy DBL and Paid Family Leave with my workers' compensation?

They are separate policies, but many carriers write them together and CoverMatch quotes them alongside workers' compensation for New York businesses.

Does New York City have its own contractor insurance rules?

Yes. New York City licenses home improvement contractors through the Department of Consumer and Worker Protection and requires proof of insurance; other cities and counties have their own rules.

By business type in New York