As you may know, the New York State Insurance Department approved an average Workers' Compensation Insurance rate increase of 9.3% for new policies or renewal policies issued on or after October 1, 2016. For the New York State Construction Industry, the rate change ranges from a decrease of 7.8% to a increase of 40.0% (this is based on the 45 more common construction classifications). Of these 45 most used construction classes, 4 went down.
New York State utilizes a rate development system for the Workers' Comp. Rates referred to as "Loss Costs" in which the State develops the base rates for each classification based on expected losses and expense data. The Insurance Carriers then multiply the Lost Costs rates by a Lost Cast Multiplier (LCM) which results in the overall policy rate charged by the Insurance Company.
Please note that the rates reflected on the following link are the Loss Cost Rate and NOT the final policy rates that will be reflected in your Workers' Comp. Insurance Policy. However, the increases and decreases reflected will provide you with an idea of how your own rates will increase or decrease.
Lastly, as a reminder, as a result of the statutory maximum benefit level increasing to two-thirds of the statewide average weekly wage, the Payroll Limitation increased this year from $1,266.15 per week to $1,296.48 per week.
Click here to view the Summary listing of Workers' Compensation Classification Codes and their corresponding manual loss cost increases and decreases. If you need the rates for a class not listed, please feel free to contact us.
Should you have any questions, please do not hesitate to contact:
Kevin A. Viaña at 845-454-0800 x 2232, or David S. Horton at 845-454-0800, x-2257.