Short answer: New York requires three kinds of coverage of most small businesses. Virtually all employers must carry workers' compensation. Any private employer with one or more employees on at least 30 days in a calendar year must provide disability benefits (DBL) and Paid Family Leave (PFL). Business vehicles need at least the state's 25/50/10 liability limits plus $50,000 in no-fault (PIP) coverage.
This guide is general information for New York employers and business owners. It isn't legal advice. Agency rules change, so confirm with the agencies linked below.
1. Workers' compensation
New York requires workers' comp for virtually all employers, including part-time staff, family members and volunteers in many cases. Details: is workers comp required in New York.
2. Disability benefits and Paid Family Leave
Per the Workers' Compensation Board, a private employer must provide disability benefits and Paid Family Leave coverage if it employs one or more people on at least 30 days in a calendar year. The 30 days don't need to be consecutive, and coverage is required four weeks after the 30th day. See the state's PFL employer requirements.
3. Business vehicles
Per the Department of Financial Services, New York's minimum liability is $25,000/$50,000 bodily injury and $10,000 property damage, plus $50,000 in no-fault (PIP) and uninsured motorist coverage at 25/50. Many businesses carry far higher limits because clients and contracts require it. See commercial auto insurance.
State unemployment insurance
Unemployment insurance is the other employer coverage New York makes mandatory. Per the U.S. Department of Labor's Significant Provisions of State UI Laws, January 2026, New York employers are covered once you meet the coverage test of $300 in any quarter. The 2026 taxable wage base is $17,600 per employee. Experience-rated employers pay 2.025% to 9.825%, and new employers start at a base rate of 4.025% (higher rates can apply by industry). Register with the state's unemployment tax agency when you hire.
Beyond the mandates
Most other coverage, like general liability, property, professional liability and cyber, comes from contracts, leases and lenders rather than New York law. See small business insurance by industry or home-based business insurance. For-hire interstate carriers also face federal minimums under 49 CFR 387.9, starting at $750,000.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New York.
Frequently asked questions
Do New York small businesses need disability insurance?
Yes. Private employers with one or more employees on at least 30 days in a calendar year must provide DBL and PFL coverage.
What's the minimum auto insurance for a New York business vehicle?
At least 25/50/10 liability, $50,000 no-fault and 25/50 uninsured motorist coverage.
Is workers' comp required in New York?
Yes, for virtually all employers.
Do New York employers have to pay for unemployment insurance?
Yes, once covered. The 2026 taxable wage base is $17,600, and new employers start at 4.025%.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.