Class code 7390 – New York Beer Wholesalers will experience a rather significant increase in their workers comp premiums over the next 12 months due to a 38.6% loss cost or base rate increase in New York. The Classification Code of 7390 reads Beer or Ale Dealer – Wholesale & Drivers 7390: Code 7390 and Code 2121 “Brewery & Drivers” shall not be assigned to the same risk unless the operation described by these classifications are conducted as separate and distinct businesses.
There are other changes in New York Workers Compensation which will further influence these rates. Starting on 1/1/14 the assessment charge will be 13.8% which is a reduction in the private commercial marketplace, but an increase for those firms insured with The State Insurance Fund. While the State Fund has not announced what they will charge and collect from insureds, the new revision indicates that ALL insurers must begin remitting the 13.8% to the State.
Another change occurring on 1/1/14 will be a change to the Split Point, which is part of the experience rating modifier formula. For insureds with more frequent smaller claims this split point change may increase their rating or experience mod, thereby driving up the cost of coverage even further.
If you’re in the Beer Wholesale or Beer Distribution business, you owe it to yourself to see what options you have well prior to your renewal. We suggest that you do NOT engage in a competitive bidding process! We can tell you from years of experience that doing so will NOT deliver the results you are looking for. Rather, you need to be strategic in your approach to the market.
We can help. With our dedicated risk management process we can help identify the cost drivers in your program, suggest improvements, and deliver results. We also have a very broad representation of the New York workers comp marketplace, so we can canvass and control the marketplace on your behalf. To assure thoroughness and transparency we will report to you the results of all underwriter engagements. I think you will find this process professional, efficient, and refreshing.
As a footnote, Class Code 2121 – Brewery will see a 41.6% increase in their loss cost rates this year!
For more information on New York workers comp policies, please do contact us in New City! We look forward to working with you.
by Gordon Coyle