Usually yes, but the answer depends on how your New York business is set up. Sole proprietors, partners, and LLC members are left off automatically and can opt in. Corporate officers are on automatically, and can only come off if one or two officers own all the stock and hold all the offices. Who this is for: New York contractors deciding whether to cover themselves on the workers comp policy.
The short version
- Sole proprietors, partners, and LLC members in New York are excluded by default. To be covered, you file a form to opt in.
- Corporate officers are covered by default. Only a corporation with one or two officers who own all the stock can opt them out.
- A corporation with three or more officers or shareholders must cover all of them.
- Leaving yourself off saves premium but leaves you with no benefits if you are hurt, and some general contractors will not accept it.
- Employees must be covered from day one no matter what you decide for yourself. Disability coverage is a separate required policy.
How does my business type change the answer?
New York's rules cut in opposite directions depending on your entity, and owners mix them up all the time. The table below is the whole rule.
| Your business | Are you covered by default? | How to change it |
|---|---|---|
| Sole proprietor | No. You are excluded. Your employees must be covered. | To opt in, file Form C-105.32 with your insurer. |
| Partnership | No. Partners are excluded. Non-partner employees must be covered. | To opt in, Form C-105.32. |
| LLC or LLP | No. Members are treated like partners and excluded. | To opt in, Form C-105.32. |
| Corporation, one or two officers who own all the stock and hold all offices, with employees | Yes. The officers are included. | To opt out, the corporation files Form C-105.51 with the insurer. Either or both officers may be excluded. |
| Same corporation with no other employees | No policy is required at all. | To be covered, buy a policy. |
| Corporation with three or more officers or shareholders | Yes, and it stays that way. | You cannot exclude the officers. |
The statute is Workers Compensation Law 54(6), and the New York State Workers Compensation Board enforces it. Entity-by-entity detail is in workers comp for New York sole proprietors, workers comp for New York LLCs, and workers comp for New York corporations.
What does excluding myself actually save?
Your premium is charged on payroll, so taking your own pay out of the calculation takes it off the bill. How that works depends on your business type. A corporate officer is rated on actual pay, within a minimum and a maximum the rating board sets, so excluding an officer removes that pay. A sole proprietor, partner, or LLC member who elects in is priced on a payroll figure set for that election, not on what you actually draw. Ask your broker which figure your insurer will use before you compare. A roofer saves more than an office-based owner.
What do I give up if I exclude myself?
- Your own benefits. If you fall on a job, workers comp pays nothing for your medical bills or lost wages. Your health insurance may exclude work injuries. Ask before you decide.
- Some general contractors. Many New York general contractors want every person on site covered and will not accept a certificate that excludes the owner, even though the law does not make them liable for an excluded owner's injury.
- Simplicity at audit. If you swing a hammer alongside your crew, the auditor may question whether you are really excluded. Keep the filed form with your policy.
New York contractors face one more wrinkle. A state law makes the building owner and the general contractor pay when a worker falls from a height, even when the worker was careless. It is called the Scaffold Law. That is why general contractors read every certificate closely, and why an excluded owner working on a ladder makes some of them nervous.
What if I have no employees at all?
A sole proprietor, partnership, LLC, or one- or two-officer corporation with no employees does not need a policy. When a permit office asks for proof, you file Form CE-200, the state's form for saying under oath that you do not need coverage. Two cautions. A registered general contractor in New York City cannot use the CE-200 and must carry workers comp and disability coverage. And New York's construction Fair Play Act treats a worker as your employee unless he truly runs his own separate business, so a regular helper paid on a 1099 usually means you have an employee. See whether you need workers comp in New York.
Does the same rule apply to New York disability coverage?
Mostly. In New York, disability and Paid Family Leave is a second policy you have to carry, separate from workers comp. Once you have had one employee on 30 days in a calendar year, you have four weeks to put it in place, and every licensing agency asks for the DB-120.1 certificate next to your C-105.2. The same one- or two-officer corporation and no-employee sole proprietor are exempt for themselves. The national view is in can I exclude myself from workers comp.
What this looks like in real life
Illustrative example. It is typical of what we see and is not a promise of how any specific situation would be handled.
The setup: Two brothers own a painting corporation on Staten Island. Each owns half the stock, one is president and one is secretary and treasurer. They have three painters. Both brothers draw $85,000 a year and both are on the workers comp policy.
What went wrong: One brother runs the office and estimates. The other paints on ladders and lifts every day. Their agent never mentioned that either or both could be excluded, so they paid premium on $170,000 of officer pay for four years.
What it cost: At their rate, excluding both officers would have taken all $170,000 of officer pay out of the premium calculation. Their broker recommended excluding only the office brother, by filing Form C-105.51, and keeping the working brother covered, because a fall from a lift is exactly the injury workers comp exists for.
The fix: Excluding an owner is a choice, not a default. Exclude the owner who never leaves the office. Keep the one on the ladder.
Frequently asked questions
Q: Can I exclude myself from workers comp in New York?
Usually. Sole proprietors, partners, and LLC members are excluded automatically. A corporation with one or two officers who own all the stock can exclude them by filing Form C-105.51. A corporation with three or more officers or shareholders cannot.
Q: I am a sole proprietor with two employees in New York. Am I covered by my own policy?
Not unless you opt in. New York excludes sole proprietors by default. Your two employees must be covered from their first day. To cover yourself, file Form C-105.32 with your insurer.
Q: Does excluding myself make my New York workers comp cheaper?
Yes, because your own pay comes out of the payroll the premium is charged on. The saving depends on your trade, pay, and insurer. You also give up all benefits if you are hurt at work.
Q: Will a New York general contractor accept a certificate that excludes me?
Some will and some will not. New York law does not make a general contractor liable for an excluded owner's injury, but many still require every person on site to be covered. Ask before you file.
Q: Do I need disability coverage in New York if I excluded myself from workers comp?
Your employees still need it once you have had one employee on 30 days in a calendar year. The same owner exemptions apply to you personally.
Q: What if I have no employees in New York?
Then most business types need no policy, and you file Form CE-200 when a permit office asks for proof. A registered New York City general contractor is the exception and must carry coverage.
How Morrow helps
Morrow is a licensed independent commercial insurance brokerage that works with contractors and trades every day. Getting a New York owner's exclusion or election right, on the right form, and matching it to what your general contractors will accept is a routine part of setting up a contractor's workers comp policy.
- Free contract review. Send us the contract or bid documents and we mark up the insurance section in plain English, whether or not you buy anything from us.
- Free, instant certificates. Clients issue their own certificates of insurance online in about a minute, any hour, any day, at no charge.
- Markets you cannot reach online. One application, shopped across many insurance companies for general liability, workers comp, auto, umbrella, and pollution coverage.
One more thing. This article is general information and is not legal advice or a statement of coverage. Your contract and your policy wording control in every case. Requirements vary by customer, by state, and by insurance company, so have a licensed advisor review your own contract and your own policy before relying on any of it.
Last updated: Reviewed by the Morrow commercial lines team. Last updated September 2026.