Business | Workers’ Compensation

New York State Workers’ Compensation insurance protects employers and employees against financial loss in the event of injury while performing one’s duties. All employers that have at least one part-time employee, even if they are family members, are required to have Workers’ Compensation insurance. Otherwise, the State will impose fines. For example, in the state of New York, a $2,000 fine is imposed for each 10-day period of noncompliance starting from the date any employee payment check is made. Having more than 5 employees and NOT having Worker’s Compensation is a felony. If you have 5 or less employees it is a misdemeanor. Business owners must pay lost wages and medical care of uninsured employees. Permanent total disability and death benefits are not capped.

Who needs it?

  1. Workers in all for-profit businesses.
  2. Domestic workers, sitters, companions and live-in maids employed 40 hours per week in a residence.
  3. Farm workers whose employer paid $1,200 or more for farm labor in the preceding calendar year.
  4. Most workers compensated by a nonprofit organization.

Workers under your direct control are probably considered your employees for workers’ compensation purposes, regardless of their tax status. There is a perception that “independent contractors” do not need Workers’ Compensation Insurance coverage and that is often false. A worker’s tax status does not determine if Workers’ Compensation insurance is required; you may need coverage even for 1099 employees.

How Does One Obtain Workers Compensation?

To purchase, you must determine your estimated annual payroll for all employees. If officers of the corporation will be included in the policy, their estimated payroll and duties must also be disclosed. Premiums are based on the total annual payroll. After the 1-year policy period is over, your insurance company will audit your business records in order to obtain the actual payroll that was previously estimated. If your actual payroll is higher than what was estimated, you will be charged the difference. If the actual payroll is less, you will receive a refund or credit on the current year’s policy.


My family and I are long time personal and business clients of Petschauer Insurance. We sincerely appreciate your responsiveness and the quality of service that Petschauer provides. We have recommended your company to others because of our satisfaction with your service. We look forward to doing business with you for years to come.
Greg Weiss
Petschauer is great. I never had a problem.  They always call me back. Fabulous employees who are always willing to help.
Marty Bruno
I have had the pleasure of working with various members of the Petschauer Team, both personally and professionally for 20+ years. And I couldn’t have done it without them. They go above and beyond. Heidi, Narima, Sherri and LuAnn don’t just bring to us the products they offer, they help me to understand the specifics and evaluate what makes the most sense for me, my family and my employees. I always feel I have a better understanding of an industry I have no understanding of so that I can evaluate the offerings in a smart way, cost effective way. They are proactive with renewals, allowing us the time to do our due diligence, evaluate our plans to be sure we’re properly covered and are always there to listen and help with special circumstances. Their kindness, caring and willingness to lend an ear when needed, really makes them stand apart from the rest. Heidi and her family have built a beautiful culture at Petschauer and I highly recommend them to anyone I meet.
Jamie Stedman-Novo
I have worked with various individuals at Petschauer and have found each to be responsive, courteous, and thoughtful. Each year, the contact for my auto policy proactively seeks new bids and has consistently saved me money on my policy.
Ryan Huber
My company has called on Petschauer Insurance for many years for its insurance needs: liability, liquor, auto, etc. Working with Erwin and his team has been a pleasure from beginning to present. They are quick to answer any question and provide sound advice. I have always felt that my and our needs are important to them, in theory and practice. They go the extra mile, and we continue to be well served.
Stephen Kennard from Canard Inc.
Excellence in customer service and it’s a one stop shop for all my insurance needs.
Tom Haines
From the first time I spoke with Lori Halloran at Petschauer Insurance, I knew she was a special person. She is a woman that conducts herself professionally, with compassion and full knowledge of all types of insurance Petschauer has to offer. While speaking with her, as she explained and answered all of my questions, I felt like I was speaking with family…which is another way to describe this company. She has a way of making very confusing decisions so simple and easy to understand. I even added another insurance policy to my two renewal policies because of her. My last renewals could have been processed via mail but I really wanted to take the time to drive and meet this wonderful woman face to face. She greeted me with this huge beautiful smile, which matched her personality perfectly. So, I just had to go back another time just to say “Hi” and bring her flowers in appreciation for all her help and also celebrate a new friendship. The Petschauer “Family” has been there for me since my first policy when I was 19 years old, and now I’m a “senior”. I’ve been with them forever and don’t plan on going anywhere else. Thank you Lori for your dedication and to the rest of the Petschauer staff.
Jane Deitlein
Quality attentive service is hard to find, but at Petschauer Insurance that’s what you can expect from their always friendly staff . It’s what we’ve experienced for all these many years.
John from Forest Pork Store Inc.
I have been with Petschauer Insurance for over twenty five years. The staff is knowledgeable and professional. Petschauer writes both my personal and commercial insurance and they provide excellent counseling. I truly trust the firm and their staff. Thank you.
Mike Matonti
I have been with Petschauer Insurance for a long time. My account executive Lori Halloran is like family to me: she is always there when I need her and is very knowledgeable and understanding. I wouldn’t go anywhere else for my insurance needs.
Vincent Falcone