What to ask contractors for: New York workers' comp
4 min read · Last updated
New York's workers' compensation rules set general coverage for employers, with specific conditions for sole proprietors without employees and for small owner-held corporations. State home improvement contract law adds a writing rule. This guide sets out what the official sources say and which documents to request from contractors. General information, not legal or insurance advice; check your contracts and your insurer. Facts last checked on 7 November 2026 against official state pages.
What the official sources say
The New York State Workers' Compensation Board coverage page (https://apps.wcb.ny.gov/content/main/coverage-required-wc.jsp) states: 'Virtually all employers in New York State must provide workers' compensation coverage for their employees (WCL §2 and 3).'
The same page says that 'Workers' compensation coverage is not required for a sole proprietor who does not have employees.' It also says that coverage 'is not required if the business is a one or two person owned corporation', where those individuals own all of the stock and hold all offices of the corporation. The page states that the exemption applies only if there are no other employees, stockholders or subcontractors.
For home improvement contracts, the state General Business Law Article 36-A applies. Section 770(6) (https://www.nysenate.gov/legislation/laws/GBS/770) defines a home improvement contract as one where the aggregate price 'exceeds five hundred dollars'. Section 771(1) (https://www.nysenate.gov/legislation/laws/GBS/771) says every such contract 'shall be evidenced by a writing and shall be signed by all the parties to the contract'.
What this means for collecting vendor documents
For a vendor with employees, ask for a certificate of insurance that shows workers' compensation coverage and its policy period, and keep the expiry date on file. The Board's general rule covers most employers, so a vendor with employees should be able to provide one.
For a sole proprietor who says it has no employees, ask for a signed and dated statement of headcount, and keep it with the certificate file. This is a record of what the vendor reported, not a legal opinion on whether coverage is required.
For a corporation with one or two owners, the page describes the exemption as available only where the owners hold all stock and all offices and there are no other employees, stockholders or subcontractors. Ask for a written statement that answers each of those points, and keep it on file.
Where a job is a home improvement contract under the state definition, keep the signed written contract in the vendor file. Whether a particular contract falls under that definition is a question for your attorney. This guide covers state-level rules only, and local rules are outside its scope.
How ShowMeTheDocs helps
ShowMeTheDocs keeps each vendor's certificates with their expiry dates and status. Starter requirement packs list the trades each requirement applies to, so a workers' compensation requirement can be set for the vendors it applies to. Vendors are emailed 30, 14 and 7 days before an expiry date, and they upload certificates through a self-service portal link without needing an account.
You can start a 14-day free trial to try the tracker on your own vendor list, or compare plans on the pricing page.
Questions
Does a sole proprietor with no employees need workers' compensation in New York?
The official Board page says coverage is not required for a sole proprietor who does not have employees. Ask for a signed statement of headcount and keep it with the file. Check the page for its current wording.
Does the one or two person corporation exemption always apply?
The official page describes it as applying only when the owners hold all stock and all offices, and there are no other employees, stockholders or subcontractors. Check each condition against the vendor's facts.
What does the state writing rule for home improvement contracts say?
The law text quoted in this guide says such a contract 'shall be evidenced by a writing and shall be signed by all the parties to the contract', and defines the threshold as an aggregate price that 'exceeds five hundred dollars'. Whether a job is covered is a question for your attorney.
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