Every employer in New York must provide workers' compensation insurance for their employees. This coverage can help pay medical bills for workers who are injured on the job.

Businesses in New York State must have workers' compensation coverage for all employees. The rule includes part-time employees and family members employed by the company.

Workers' compensation coverage is not required for partnerships, LLCs, and LLPs that do not have employees. Members and partners are not considered employees for the purposes of obtaining workers' compensation insurance but may voluntarily cover themselves under a workers' compensation policy.

Workers' compensation coverage is not required for a sole proprietor who does not have employees.

Workers' Compensation coverage is not required if the business is owned by one or two people, and those people own all stock and offices, and there are no additional employees.

If you are self-employed or a sole proprietor of a business, you do not need workers’ compensation insurance if you do not have any employees. However, a sole proprietor may voluntarily cover themselves under a workers' compensation policy.

Section 32 of the WCL specifically states that NO agreement by an employee to waive his/her right to workers’ compensation benefits shall be valid if it does not relate to a specific claim and has not been approved by the Board.

Insurance policies can be obtained through a private insurance carrier, State Insurance Fund, or becoming self-insured. Policies can be purchased through an insurance carrier, broker, or agent. There are more than 200 private insurance carriers authorized by the New York State Department of Financial Services. These insurance carriers may specialize in certain markets and offer various incentives to policyholders.

Failure to secure coverage for five or fewer employees within a one-year period is a misdemeanor and is punishable by a fine of between $1,000 and $5,000. If the failure to secure coverage is for more than five employees, it becomes a felony punishable by a fine of between $5,000 and $50,000. If there is a subsequent conviction within five years for failure to secure coverage, the fine would be between $10,000 and $50,000 and could include other penalties and fines.

Reference：
http://www.wcb.ny.gov/content/main/Employers/workers-compensation-insurance.jsp
http://www.wcb.ny.gov/content/main/Employers/violations-wclaw.jsp
https://www.insureon.com/small-business-insurance/workers-compensation/new-york