Who must carry it in New York
Virtually every employer with one or more employees must carry workers' compensation, including part-time, seasonal, family and most domestic employees.
Who counts as an employee
Family members working for the business count, and out-of-state employers must cover employees working in New York. The label on the paycheck does not settle it: New York applies its own employee test, and a worker who fails it is an employee for workers' compensation no matter what the contract says.
Owners, officers and LLC members
Sole proprietors and partners without employees are exempt. A one- or two-person corporation whose officers own all the stock may exclude those officers. The election is made on the policy and affects both coverage and premium, so decide it before the policy is bound rather than at audit.
The day you hire
CoverMatch quotes workers' compensation from the first employee, with pay-as-you-go billing through most payroll companies where a carrier offers it, so the policy can start the week you hire without a large deposit. Add the policy to your wallet and the live certificate is ready for the general contractor or client who asks for proof.
If you go without
The Board assesses penalties for each period without coverage and can issue stop-work orders; going uninsured is a misdemeanor with five or fewer employees and a felony with more. The specific amounts and procedures are in the statute and on the agency page linked above; they change, and the licensed agent who reviewed this page checks them on each update.