If your New York corporation has employees, yes, it needs workers compensation, and unlike sole proprietors and partners, corporate officers are covered by default rather than excluded. The one real exception is narrow: a corporation with only one or two officers who together own all the stock and has no other employees is not required to carry coverage.
Who this is for: Owners and officers of a New York corporation (C-corp or S-corp) who want to know whether the company must carry workers comp and whether the officers themselves are in or out. Workers comp pays an injured worker's medical care and part of their lost wages.
The short version
- Employees: a corporation with any employees must carry workers comp, from the first hire.
- Officers: corporate officers are covered by default, the opposite of how sole proprietors and partners are treated.
- The narrow exception: a one or two officer corporation that owns all its own stock and has no other employees can skip coverage.
- Opting out: such a corporation that does carry a policy for other staff can exclude those one or two owner-officers with Form C-105.51.
- Three or more: a corporation with three or more officers or shareholders must carry coverage and cannot exclude the officers.
Are corporate officers covered in New York?
Yes, by default, and this is the trap that surprises owners who assume officers are exempt the way sole proprietors are. When a New York corporation has employees, its officers are treated as covered employees too, and their pay is rated into the premium unless a valid exclusion applies.
| Corporation setup | Must carry coverage? | Can the officers be left out? |
|---|---|---|
| Corporation with non-owner employees | Yes | Officers are covered by default |
| One or two officers owning all stock, no other employees | Not required | Yes, the owner-officers can be left out |
| One or two owner-officers plus other employees | Yes, for the employees | The owner-officers can be excluded with Form C-105.51 |
| Three or more officers or shareholders | Yes | No, the officers cannot be excluded |
When can a small corporation skip coverage?
Only in a tightly drawn case. The corporation must have one or two officers, those officers must between them own all of the stock (and, for two officers, hold all the offices), and there must be no other employees. Hire even one non-owner worker and the corporation must carry a policy for that worker, although it can still exclude the one or two owner-officers by filing Form C-105.51 (the notice to exclude the sole shareholder officer or two executive officers).
Do not confuse this with the owner rules for other business types, which run the opposite way. Sole proprietors, partners, and LLC members are out by default and elect in with Form C-105.32, while corporate officers are in by default and only the smallest corporations can elect out with Form C-105.51.
C-corp or S-corp: does it matter?
No. New York's workers comp rules look at whether you have employees and how many officers and shareholders own the company, not at your federal tax election. An S-corp and a C-corp are treated the same way here.
A quick New York example
Illustrative, not a quote. Nina runs an electrical contracting business in Yonkers as an S-corp. For the first year she is the sole officer and owns all the stock with no other employees, so she is not required to carry a policy. When she hires two apprentices, that changes: the corporation must cover the apprentices from their first day. Nina can keep herself off the policy by filing Form C-105.51, or include herself so her own injuries are covered. She decides to include herself, since she still pulls wire on site, and when an apprentice is hurt on a job the policy pays the claim while Nina owes nothing out of pocket.
Real questions New York owners ask
I am the only officer of my New York corporation and have no employees. Do I need workers comp?
Generally no. A corporation with one or two officers who own all the stock and has no other employees is not required to carry coverage. Hire a non-owner worker and that changes.
Are my corporate officers automatically covered?
Yes. Unlike sole proprietors and partners, corporate officers in New York are covered by default when the corporation has employees. Their pay is rated into the premium unless a valid exclusion is filed.
How do I leave the owner-officers off the policy?
Only a one or two officer corporation that owns all its stock can do this. It files Form C-105.51 to exclude the sole shareholder officer or two executive officers. Larger corporations cannot exclude their officers.
We have three shareholders. Can any of us opt out?
No. A corporation with three or more officers or three or more shareholders must carry coverage and cannot exclude the officers. The opt-out is limited to one or two owner-officers.
Does it matter if we are an S-corp or a C-corp?
No. New York looks at whether you have employees and how many officers and shareholders own the company, not your federal tax status. Both are treated the same for workers comp.
I see 'employers liability' listed on the policy too. What is it, and do I actually need it?
Workers comp pays defined benefits to an injured worker regardless of fault. Employers liability, which comes with the policy, covers you if an injury leads to a lawsuit outside the normal comp system. You generally want both.
If we exclude the officers, are the employees still fully covered?
Yes. Excluding one or two owner-officers with Form C-105.51 does not affect the employees. The policy still covers every non-owner worker in full.
Why New York owners choose Morrow
- We shop the right market for you. New York is an open, competitive market: you can buy coverage from any private carrier the state authorizes or from the state-run New York State Insurance Fund (NYSIF), so Morrow shops multiple insurers to find the best fit instead of leaving you with a single option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related New York guides
Every New York business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in New York (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How much does workers comp cost?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- What workers comp does not cover
- Workers comp vs employers liability
- Electrician workers comp in New York
This guide is general information, not legal advice. New York rules and penalty amounts can change, so verify current requirements with New York State Workers' Compensation Board or a licensed advisor before you rely on them. Last updated: July 2026.