NY Work Comp Loss Costs To Fall 22%
Average Workers’ Compensation loss costs for New York employers will nose-dive by almost 22% this fall. The New York Compensation Insurance Rating Board announced last week that the state Department of Financial Services has approved the board’s loss cost level request for 2026. The new lost costs apply starting on October 1.
It is the tenth consecutive year in which New York Workers’ Comp loss costs have decreased. It follows a 13% reduction in 2025.
The announcement made the new schedule of loss costs by classification code available. In addition, the board said that the maximum weekly payroll for construction employments will be $1,922.25, up from $1,833.63 last year. Other minimum and maximum payroll levels remained unchanged.
Loss costs are not premium rates. They reflect the expected cost of paying losses plus adjustment expenses. Each insurance provider, including the New York State Insurance Fund, applies a factor known as a loss cost multiplier (LCM) to a loss cost to determine the rate. The LCM increases the loss cost to account for insurer overhead and expected profit. The New York State Department of Financial Services reviews and approves filed LCMs for each private insurance carrier.
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