January 1 Workers Comp Strategies

January 1 is when a significant percentage of workers compensation policies will renew, and this year there are several changes occurring in workers comp that deserve attention.

In October the New York Compensation Insurance Rating Board issues new loss cost rates for all classifications which resulted in an average increase of 9.9%.  Some rates went up, some went down, but some were particularly hard hit in certain manufacturing, contracting, and even some white collar office exposures.    Below is a list of just some of the classifications being particularly hard hit.  The good news is that we have some unique solutions for clients in these industries not available to every broker, so give us a call if you fall into one of these industries or have clients in these industries in New York.

Classification

% Increase

Sheet Metal Contractors

17.20%

Air Conditioning Contractors

12.80%

Cabinet Makers

34.70%

Electrical Wiring Contractors

10.7%

Ice Cream & Frozen Desert Manufacturers

26.70%

Food Products Manufacturers

20.30%

Metal Stamping

34.60%

Moving & Storage

26.50%

Automatic Fire Sprinkler Contractors – Installation

15.50%

Beer & Ale Wholesalers

38.60%

Ice Manufacturers

26.20%

Linen Supply Service

37.40%

Nut & Bolt Manufacturing

24.9%

Physician’s Offices

17.3%

Also on October 1 there was a change to the experience rating modifier methodology that moves the “split point” from $5,000 to $10,000 which will negatively impact insureds with several frequent losses in their experience.

Lastly, on January 1 the assessment charge on New York workers comp policies will decrease to 13.8% from 18.8% – that’s good news for all insureds in a commercially insured workers comp program.  For those businesses insured through The State Insurance Fund, they may actually see their rates rise due to new collection rules, but final word on The State Fund’s position on this issue has not yet clear.

Any clients insured through The NY State Insurance Fund should speak to us now, as more competitive solutions are available.

Workers Comp is a big part of every New York business owner’s insurance budget which is why we have formed a specialty practice around this line of business to help reduce both direct and indirect costs associated with workers comp.  For more info, please contact us in New City, New York.

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