If your New York partnership has any employee who is not a partner, yes, the partnership needs workers compensation for that person, from their first shift. The partners themselves are automatically left out of the partnership's own coverage, the same way sole proprietors and LLC members are, though each partner can choose to be included.
Who this is for: Partners in a New York general or limited partnership deciding whether the business must carry workers comp and whether the partners are covered. Workers comp is the insurance that pays medical bills and part of lost wages when a worker is injured on the job.
The short version
- Partners: automatically excluded from the partnership's own workers comp policy.
- Employees: any non-partner employee, part-time included, must be covered from the first hire.
- Partners-only firm: a partnership with no non-partner employees is generally not required to carry a policy.
- Opting in: a partner who wants coverage files Form C-105.32.
- Proof: a partners-only firm with no staff can file Form CE-200 to attest it is exempt, but only for a government license, permit, or contract office. A private client or general contractor cannot accept it, so for them you would carry a policy to show a certificate.
Are the partners covered?
Not by default. New York treats partners as owners, not employees, so they sit outside the policy unless they opt in. This mirrors how sole proprietors and LLC members are handled. Everyone the partnership hires who is not a partner sits inside the policy.
| Person | Covered by default? | How to change it |
|---|---|---|
| Partner (owner) | No, excluded by default | Elect in with Form C-105.32 |
| Non-partner employee (full-time) | Yes, must be covered | Cannot be waived |
| Non-partner employee (part-time or seasonal) | Yes, must be covered | No hours minimum |
| Family member on the payroll | Yes, must be covered | No general family exemption |
| 1099 worker who is really an employee | Yes, must be covered | Turns on the right-of-control test |
When does the partnership need a policy?
The test is whether you pay anyone who is not a partner. If yes, you need a policy for those employees before they start work. If the firm is only its partners with no other staff, New York does not require coverage, though partners can elect in for their own protection, which matters because a partner's own work injury is otherwise uninsured.
How does a partner opt in?
Each partner who wants coverage files Form C-105.32 with the insurer. That is the same notice sole proprietors use, and it brings the partner under the coverage of the Workers' Compensation Law. The partner's earnings are then included when the premium is calculated.
A quick New York example
Illustrative, not a quote. Two plumbers run a shop in Buffalo as a general partnership and employ one apprentice and a part-time office assistant. Both partners are excluded from the policy by default, but the apprentice and the assistant must be covered from their first day, part-time status and all. Because the partners are on job sites daily, each files Form C-105.32 to cover themselves. When the apprentice scalds a hand on a hot line, the policy pays the treatment and lost wages. If the partners had left the workers uninsured, they would each be personally liable for the penalties and any benefits owed, since partners do not get a liability shield here.
Real questions New York owners ask
We are two partners in New York with no other staff. Do we need workers comp?
Generally no. A partnership made up only of partners with no non-partner employees is not required to carry coverage. Each partner can still elect in with Form C-105.32 to cover their own injuries.
We hired one part-time assistant. Do we need a policy now?
Yes. From the first non-partner you pay, New York requires a workers comp policy for that worker before their first shift. Part-time and seasonal workers count with no hours minimum.
Are the partners covered under the firm's policy?
Not by default. Partners are excluded automatically, just like sole proprietors and LLC members. A partner who wants coverage files Form C-105.32 so their earnings are included in the premium.
Can our workers comp bill include the partners' pay?
Only if the partners opt in. If they do not, their earnings are left out of the premium base. If they file Form C-105.32, their pay is rated in and their injuries become covered.
Are we personally on the hook if we skip coverage?
Yes. Partners are personally liable for a partnership's failure to carry workers comp, including penalties and any benefits owed to an injured worker. The partnership form does not shield you from that.
Does a family member working in the partnership need coverage?
Yes. New York has no general family exemption for a for-profit business, so a family member on the payroll must be covered like any other employee.
A client wants proof of coverage but we have no employees. What do we send?
If you carry a policy, we send a certificate the same business day for most carriers. A private client cannot accept Form CE-200, because that form is only for a government license, permit, or contract office. If the firm has no employees, you would either carry a policy, often a minimal one, to produce a certificate, or the client agrees to work with you without it.
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?
- I own a corporation (C-corp or S-corp): do I need it?
- 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)
- Do sole proprietors need workers comp?
- Hiring your first employee: what changes
- Plumber 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.