Business Insurance Requirements for Nurses in New York

One in every seven New Yorkers are employed in the healthcare industry, translating to more than 1 million workers in the field. As the most populous segment of Americans heads toward retirement, the need for nurses and other healthcare professionals continues to skyrocket. New York presents a wealth of opportunity for nurses starting their own business. It is also a notoriously litigious state, which makes proper business insurance all the more necessary to avoid severe financial damage. Here are some considerations to keep in mind when choosing business insurance for your practice.

Will your practice require commercial space? Most leasing agreements mandate proof of general liability insurance and/or commercial property insurance. New York state law requires virtually all small businesses with employees to carry workers’ compensation insurance, though sole proprietors are among those exempted. Professional liability insurance, also called nurse malpractice insurance or errors and omissions insurance, could potentially cover the cost of a lawsuit due to a business discrepancy or a misdiagnosis. While not required under New York state law, this policy is considered an area of critical importance by the national American Nurses Association.

Insureon makes shopping for insurance easy with industry-leading technology that gathers quotes from top U.S. carriers that fit your needs. Read more to find out which policies are most common for nurses in New York, and start an application to get your free quotes.

Find the right insurance policy for your nursing business

The most common policies for New York nurses vary depending on a number of factors, including revenue, client contracts, and partnerships. The table below illustrates which policies might work best for your business type.


Business type General liability / BOP Professional liability / malpractice Workers' comp
Sole proprietor X X  
Contractor / freelancer X X  
Employer X X X


General liability insurance: General liability insurance is the foundation of a nurse’s business protection with coverage that extends to bodily injury, client property damage, advertising injury, and the cost of legal defense. Most commercial leases require you to have this coverage.

Professional liability insurance: Many clients require proof of professional liability insurance before entering contracts for professional services. This policy, also called errors and omissions insurance or nurse malpractice insurance, can help cover legal expenses if you’re sued for unsatisfactory work or a business discrepancy such as a misdiagnosis.

Business owner's policy (BOP): Nurses sometimes qualify for a business owner’s policy. This package helps your business save money by bundling commercial property insurance with general liability at an affordable rate.

New York workers' compensation: New York state law requires workers’ comp coverage for all small businesses with employees. If an employee is injured on the job, workers’ comp can help pay for medical fees and lost wages. Independent contractors and sole proprietors can elect to cover themselves with workers’ compensation, but they aren’t legally obligated to do so. Workers' comp is especially important in the field of nursing, as it has the highest rate of nonfatal occupational injuries, according to the Bureau of Labor Statistics. In particular, nurses are susceptible to injuries resulting from overexertion and bodily reaction, followed by falls, slips, and trips, as you can see in the chart below.

Most Common Workplace Injuries: Nurses in the U.S.

Business insurance costs for nurses in New York

Nurses in New York can expect their insurance costs to be around the national median, according to an analysis of Insureon applications. Of note, general liability insurance is slightly lower than the national median. This policy is foundational to almost all businesses and is usually required in lease agreements. Workers’ compensation insurance is typically the most expensive policy for nurses, who face a higher risk of injury than professionals in other fields. It may be tempting to go without this policy, but New York state law requires virtually all small businesses to carry workers’ comp – those that don’t may face a steep fine.

Median Insurance Costs for New York Nurses

Save time and money with Insureon

Insureon’s industry-leading technology helps nurses in New York save time and money shopping for insurance by comparing policies from dozens of top U.S. carriers. Simply apply online and review quotes for the policies that best fit your business needs. Our insurance specialists are licensed in New York and can answer your questions as you consider coverage.

To make the application go even quicker, have this information ready:

  •      Workforce details, such as the number and types of employees.
  •      Current and projected revenue.
  •      Business partnerships.
  •      Insurance history and prior claims.
  •      Commercial lease insurance requirements.

Apply for free nurse insurance quotes today.