If you are a New York sole proprietor with no employees, you generally do not need workers compensation, and you are automatically left out of any policy you buy. The moment you pay someone else to work for you, that changes: you must cover that employee from their first shift, even though you can still leave yourself out.
Who this is for: New York sole proprietors (people who run an unincorporated business in their own name) trying to figure out whether they need workers comp for themselves, for helpers, or to satisfy a client. Workers comp pays medical bills and part of lost wages after a work injury.
The short version
- Just you: a sole proprietor with no employees is generally not required to carry workers comp.
- You hire someone: any employee, including part-time or seasonal, must be covered from the first hire.
- You are excluded by default: New York automatically leaves the sole proprietor out of the business's own policy.
- Opting in: to cover yourself, you file Form C-105.32 with the insurer.
- Proof without a policy: if a government permit, license, or contract office asks and you have no employees, Form CE-200 lets you attest you are exempt. A private client or general contractor cannot accept it, so for them you would carry a policy to show a certificate.
Do I need it for just myself?
By law, no. A sole proprietor working alone is not required to buy workers comp, and New York will not force you to insure yourself. But there are two reasons solo owners still buy it. First, your own health plan may not pay for an injury it treats as work-related, and workers comp fills that gap. Second, many general contractors and clients will not let you on site without proof of coverage, even if the state does not require it.
What changes when I hire help?
Everything, from the first person you pay. Once you have an employee, New York requires a policy for that worker before they start, with no exception for part-time, seasonal, day, or casual labor. You, the sole proprietor, remain excluded by default, but you can add yourself.
| Situation | Do you need a policy? | Are you (the owner) covered? |
|---|---|---|
| Solo, no employees | Not required | Not covered unless you elect in |
| Solo, but a client demands proof | Not required by law, often required by contract | Carry a policy for the certificate; CE-200 only satisfies a government office |
| One part-time employee | Yes, required | Excluded unless you file Form C-105.32 |
| Several employees | Yes, required | Same, you are excluded by default |
How do I cover myself if I want to?
File Form C-105.32 with your insurer. It is the notice that brings a sole proprietor or partner under the coverage of the Workers' Compensation Law. Once filed, your own earnings are rated into the premium and a work injury to you is covered like an employee's would be. This is common for tradespeople who work with their hands next to the crew.
A quick New York example
Illustrative, not a quote. Sam runs a one-person landscaping business on Long Island as a sole proprietor. Working alone, he is not required to carry workers comp, but a property management company he wants to work for will not add him to its vendor list without proof of coverage. Because a private company cannot accept a Form CE-200 (that form is only for a government license, permit, or contract office), Sam can either buy a policy, often a minimal one, and elect himself in with Form C-105.32 so a certificate is available and his own injuries are covered, or agree terms with a client who will take him on without one. He hires a seasonal helper in spring, and at that point a policy for the helper becomes mandatory from day one, whether or not Sam covers himself.
Real questions New York owners ask
I work alone as a sole proprietor in New York. Do I have to buy workers comp?
Generally no. A sole proprietor with no employees is not required to carry it. Many owners still buy it because clients demand proof of coverage or because their health plan will not pay for a work injury.
I hired my first part-time helper. Do I need coverage now?
Yes. From the first person you pay, New York requires a workers comp policy for that worker before their first shift, with no part-time or seasonal exception. You can still leave yourself out.
How do I cover myself as the owner?
File Form C-105.32 with your insurer. That notice brings a sole proprietor under the coverage of the law, and your earnings are then included in the premium so a work injury to you is covered.
A general contractor wants proof of coverage but I have no employees. What do I do?
A general contractor cannot accept Form CE-200, because that form is only for a government license, permit, or contract office, not a private business. Your practical choices are to buy a policy, often a minimal one, and elect yourself in to produce a certificate, or to have the contractor agree to take you on without it.
Can I buy a bare-bones policy just to get a certificate for a client, without covering myself (a 'ghost policy')?
Some owners buy a minimal policy that covers no owner pay, sometimes called a ghost policy, just to produce a certificate for a client. It works for proof but does not cover your own injuries, so weigh that before choosing it.
If I never hire anyone, could I still owe penalties?
Not for going without coverage, since a solo sole proprietor is not required to carry it. Penalties apply once you have an uninsured employee, so the risk starts the day you pay your first worker.
Does covering myself cost much?
It adds your own earnings to the premium base, so the cost depends on your pay and your trade. For a solo tradesperson it is often modest, and we can price it both ways so you can compare.
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 own a corporation (C-corp or S-corp): do I need it?
- 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)
- Do sole proprietors need workers comp?
- What is a ghost workers comp policy?
- Landscaper 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.