New York increases minimum security requirement for workers’ comp self-insurers

Overview of Self-Insurance

New York State employers are required to provide workers’ compensation, disability, and Paid Family Leave benefit coverage to their employees.

Under the Workers’ Compensation Law of New York State (WCL)

• Article 4 §50 states that one way in which employers may provide workers’ compensation coverage is by applying to become an approved self-insured employer in New York
• Article 9 §211 states that one way in which employers may provide disability and Paid Family Leave benefits coverage is by applying to become an approved self-insured employer in New York

Self-Insurance is a privilege in New York State. If you apply and qualify to provide benefits through self-insurance under the WCL, you agree to make benefit payments to your injured employees and meet all other obligations under Workers’ Compensation Board (Board) Laws, Rules and Regulations. Please be aware that each entity, regardless of affiliation, must file its own application to self-insure. Subsidiaries are not automatically covered if their parent company is approved for self-insurance coverage.

All qualified self-insurers (except political subdivisions) must post a security deposit with the Board in the form of cash, irrevocable letter of credit and/or surety bond. This deposit will be used in the event that the self-insurer defaults on their obligation to provide the workers’ compensation, disability, and/or Paid Family Leave benefits to their employees.

• Effective July 1, 2026, the minimum security deposit for workers' compensation self-insurers is $1,999,000.
• The minimum deposit for disability self-insurers is $10,000.
• The minimum deposit for disability and Paid Family Leave self-insurers is $11,000.

Every year that the employer remains self-insured, the security deposit is reviewed for adequacy, based upon information provided in the self-insurer’s annual reports and current rates. Employers must adjust their security deposit to adequate levels as determined by the Board.