In New York State, workers’ compensation is mandatory for most employers with even one employee, and virtually all employers must also provide disability and Paid Family Leave coverage. Other policies — general liability, commercial property, commercial auto or a business owner’s policy (BOP) — are chosen to fit the type of business and its risks.
Small businesses run by Polish Americans in New York cover a lot of ground: renovation and construction crews, grocery stores and delis, hair and beauty salons, cleaning companies, repair shops. Each carries a different risk — working on a client’s roof is not the same as slicing cold cuts behind a counter or cleaning offices at night. That is why there is no single “business policy” that fits everyone.
This guide sorts the topic out: first the coverage state law requires, then the optional policies that protect a business from claims and losses, and finally practical tips for a conversation with an agent. We do not quote prices — the premium always comes from an individual quote for a specific business and level of coverage.
Which insurance is required for a small business in New York?
The main obligations apply to employers. The New York State Workers’ Compensation Board (WCB) states that workers’ compensation insurance is mandatory for most employers of one or more employees. It pays for medical care for job-related injuries and illnesses and partially replaces lost wages. Coverage can be obtained from a private insurance carrier, through the NY State Insurance Fund, or — for qualifying employers — by self-insuring. Employers may not deduct the cost from an employee’s wages.
The second obligation is disability and Paid Family Leave coverage, which virtually all employers in the state must provide. Disability benefits, as the WCB explains, are weekly cash payments that partially replace wages lost to injuries or illnesses that are not work-related. Paid Family Leave, according to the state’s program website, is funded through employee payroll contributions, but it is the employer’s job to obtain the coverage.
Going without coverage has serious consequences. According to the WCB, an employer without required workers’ compensation is responsible for the benefits awarded to its employees and may be sued by an injured employee; penalties and a stop-work order are also possible. Sole proprietors and partners, among others, are personally liable for a failure to secure coverage.
If the business owns vehicles, each one needs at least the minimum coverage required in New York — the state Department of Financial Services lists the requirements. The other policies described below are chosen to fit the business; landlords and clients sometimes require them as well.
What does general liability cover, and when do you need professional or product liability?
General liability is the foundation for most businesses. The U.S. Small Business Administration (SBA) describes it as protection against financial loss resulting from bodily injury and property damage to others. Typical examples are a customer who slips in a store or damage done in a client’s home during a renovation. Coverage and exclusions depend on the terms of each policy.
The SBA also lists two narrower types of liability coverage. Product liability is for businesses that make, distribute or sell products and protects against loss when a defective product causes injury. Professional liability is for businesses that provide services and protects against loss from errors and negligence. Whether a particular business — a deli preparing food, a beauty salon, a bookkeeping office — needs either one is worth discussing with an agent.
Businesses with a street-level storefront should not forget the sidewalk. The city’s Department of Transportation notes that property owners are potentially liable for personal injuries when they fail to keep the adjoining sidewalk in good repair — winter included. For rented space, the lease spells out who is responsible for what.
What is commercial property insurance, and what is a BOP?
Commercial property insurance protects equipment, tools, inventory and fixtures against loss or damage from a wide range of events. The SBA points out that it matters most for businesses with significant property and equipment. If you run a business from home, check whether your homeowners policy covers business equipment — the SBA mentions a rider added to homeowners insurance that can protect a small amount of it.
For many small businesses, a business owner’s policy (BOP) is a convenient option. The SBA describes it as a package that combines typical coverage options in one bundle; most often that means general liability and commercial property together. What exactly is included and what the limits are is worked out during a quote at the agency.
For a quote with no obligation, call: 718-273-2000.
Does a vehicle used for business need its own policy?
That depends on who owns the vehicle and how it is used. A renovation crew’s van loaded with tools, a store’s delivery vehicle or a car employees use to visit clients carries a different risk than a car used for personal errands. Tell your agent who drives it, what it carries and how often it is on the road — that determines whether a personal or a commercial auto policy is the right fit. We cover the parts of an auto policy in our guide on what car insurance covers in New York.
When should you consider an umbrella policy?
An umbrella policy extends liability protection beyond the limits of the underlying policies, such as general liability or auto. Business owners usually consider one when their basic limits seem too low for the scale of what they do.
How to prepare for a conversation with Thomas K. Kowalski’s agency
The agency serves clients in English, Polish and Spanish. Before a conversation about business insurance, it helps to have:
- Basic business information — name, legal structure, business address, the type of work you do or products you sell, and how long the business has been operating.
- Employee information — the number of people, the kind of work they do and total payroll, plus a list of subcontractors. This is needed for workers’ compensation and disability coverage.
- Current policies (declarations pages) — with limits, deductibles and renewal dates. They allow a fair comparison and help avoid a gap in coverage.
- Vehicle and driver details — VINs, driver’s licenses of everyone who drives, and a description of how the vehicles are used for work.
- Your lease, a property list and claims history — the landlord’s insurance requirements, an estimated value of equipment and inventory, and any losses in recent years.
The agency is based on Staten Island and also serves Brooklyn and Queens — the agency’s listing has its contact details.
The most common mistakes when insuring a business
The first mistake is treating every helper as a subcontractor. In construction, a worker performing services for a contractor is presumed to be that contractor’s employee unless the contractor can prove that all of the statutory criteria are met. The WCB also notes that a business cannot require its employees to buy their own workers’ compensation policy.
The second is relying on personal policies for business use — a homeowners policy for business equipment, or a personal auto policy for a car that drives to clients every day — without telling the agent. The third is not updating coverage as the business grows: new employees, a second van, a bigger space or a new service all change the risk, and an old policy may not reflect it.
The SBA’s general rule is to insure against things you wouldn’t be able to pay for on your own. That is a good starting point for the conversation: instead of asking “which policy is required,” ask which event could threaten your ability to keep the business running.
Reviewing coverage once a year, ideally before renewal, is a way to check that your policies keep up with how the business operates today. You are welcome to talk about business insurance with Thomas Kowalski’s agency: 718-273-2000.
This article is for general information only and is not insurance or legal advice. Coverage, exclusions and premiums depend on the specific policy and type of business — every case requires an individual assessment; please contact Thomas Kowalski’s agency about your situation.
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