NYS Department of Financial Services Approves and Releases 2020 Workers’ Compensation Rates
By Brett Findlay, ARM
Good news is on the way for New York State employers and workers’ compensation costs.
On July 15, 2020 the New York State Department of Financial Services approved and published the filing submitted by the New York State Insurance Rating Board for an average decrease of 1% of all New York State loss costs. The change in loss costs will become effective on policies renewing on or after October 1, 2020. This is the fifth consecutive year with an overall loss cost decrease in New York State.
The impact of the loss costs, or rates, will vary depending on each individual classification code. For specific information on the impact this announcement could have on your business, give me a call any time at 315-280-6376.
While this announcement affects all industries, it has a particularly big impact on New York State contractors. OneGroup’s Construction Team has reviewed all applicable construction-specific classifications and has verified a significant number of decreases – most in the range of 10% to 20%. That means big potential decreases to contractors’ workers’ compensation costs.
New York State contractors have been paying some of the highest workers’ compensation rates in the country. With the new loss cost filings approved, there is potential for further relief on the way.
It is important to note that these rate changes will not go into effect on any individual policy until October 1. If your effective date is before that date, you will have to wait until your policy renewal before any rate changes apply. Regardless of when your effective date is, you should know the exact rate changes to your classifications sooner rather than later. It’s important to not only forecast the future costs of your program, but also to develop a marketing plan for your upcoming renewal.
I anticipate that this type of rate fluctuation will cause changes in the insurance marketplace. Insurance carriers may look to using higher loss cost multipliers, amongst other possibilities, in order to offset rate decreases. You should be in front of this, as should your broker.
Our construction team is dedicated to risk management and industry-specific insurance issues. We serve as a resource to your organization for all of your construction specific questions and concerns. We take great pride in being at the forefront of industry trends and assisting others wherever we can. You can find out more about our construction team here.
Please feel free to call me directly at (315) 280-6376 or email me at BFindlay@OneGroup.com for any further clarification.