The New York workers’ compensation insurance law requires the majority of employers to have appropriate workers comp insurance coverage in place. However, there are three key exemptions.
Sole Ownership
If you run your business alone and don’t have any employees, you may not need to have workers’ compensation coverage. You should note, however, that in order
not to inadvertently break the law, you must not use the services of volunteers, such as family or friends.
Partnership
Partnerships set up under New York laws may also be exempt, but only where they comply with the provisions applicable to businesses in sole ownership outlined above.
Small Corporation
Where one or two people have set themselves up as a corporation, hold all the offices and own all the stock, they might also be exempt, as long as they have no employees of any kind, as per the other two exempt categories above.
Sub-Contractors
It is important to note that should your otherwise exempt business use the services of sub-contractors, you should make sure they have their own insurance coverage. Otherwise, the New York Workers Compensation Board may rule that they are employees. Similarly, when a sole owner, partner, or small corporation owner works as a sub-contractor, he or she is required to hold personal New York workers compensation insurance.
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