N.Y.: Revised WC loss costs effective 10/1/23

August 8, 2023

In May, an application for an overall loss cost decrease of 2.6% was submitted to the New York Department of Financial Services by the New York Compensation Insurance Rating Board. The DFS approved the application as filed with an effective date of Sunday, Oct. 1, 2023.

There is no change in deductible premium credits and the Workers Compensation Security Fund surcharge (remaining at 0%). However, the United States Longshore and Harbor Workers Coverage percentage is changed from 76.6% to 90.4%.

Individual classifications

Although the average change in classification loss costs is -2.6%, changes to individual classification loss costs can vary significantly. The NYCIRB has released Bulletin 2584 containing the new loss costs by classification and a comparison by classification between the new loss costs and the 2022 loss costs. For example, ICE MFG (Code 2150) jumps 22.2%, while IRON OR STEEL ERECTION-FRAME STRUCTURES-NOT OVER TWO STORIES IN HEIGHT-ALL OPERATIONS TO COMPLETION (Code 5059) drops 26.4%.

Terrorism and catastrophe

The loss costs for terrorism are reduced from $0.03 to $0.029 per $100 of payroll and the loss costs for natural disasters and catastrophic industrial accidents are reduced from $0.005 to $0.003 per $100 of payroll.

Loss cost multipliers

NYCIRB only publishes loss costs, and the final rates must be developed by insurers applying their individually approved loss cost multiplier. The multiplier reflects the insurer’s anticipated profit and expenses unrelated to loss adjustment. In addition, each carrier must determine and file its own expense constants, minimum premiums for each employment classification, the maximum/minimum premium and tables of premium discounts.

Insurers that have loss cost multipliers currently approved by the DFS do not have to refile them to utilize the Oct. 1, 2023, loss costs. Each insurer’s current multiplier can be viewed here.


The 2013 Business Relief Act simplified the billing and collection of assessments. By Nov. 1, 2013, and every year thereafter, the NYCIRB will publish an assessment rate as a percentage of premium to be used by all payers beginning Jan. 1 of the upcoming calendar year. All statutory assessments will be combined into this single assessment, except for the so-called self-insurers’ assessment. The current assessment charge of 9.8% is applicable through Dec. 31, 2023.


The weekly maximum wage benefit increases from $1,125.46 to $1,145.43, effective July 1, 2023. This benefit amount is set at two-thirds of the New York State Average Weekly Wage, calculated for 2022 and reported by the Department of Labor on March 31, 2022, to be $1,718.15.

Rating elements

The maximum average weekly remuneration for executive officers, sole proprietors and partners increases from $2,600 to $2,650. The maximum remuneration for nonexecutive officers increases from $6,925 to $7,075. The minimum remuneration amount remains at $875 for executive officers, sole proprietor, and partners, and increases from $425 to $450 for not-for-profit executive officers.

Payroll limitation program

The payroll cap under the New York Workers’ Compensation Construction Employment Payroll Limitation Program increased from $1,688.19 to $1,718.15 per week for policies with effective dates on and after July 1, 2023. According to provisions in the 2007 Workers Compensation Reform Act, this limit is adjusted every year based upon changes in the average weekly wage as calculated by the DOL. The differential remains at 0% for all three territories.

Experience rating plan

The formula to determine the experience modification factor includes entries for “primary” actual and expected losses and “excess” actual and expected losses. Primary and excess losses are separated at a “split point.” As a result of changes made in the Experience Rating Plan effective Oct. 1, 2022, split points can vary from as little as $1,000 for the smallest risks to as high as $170,000 for the largest risks. They are determined as a function of each risk’s expected losses in the experience period. A higher split point means that more claims will cross the primary loss threshold and impact the experience rating modification. In addition, rating values for use with the New York Experience Rating Plan are revised, as provided in Bulletin 2585.

Dan Corbin, CPCU, CIC, LUTC
PIA Northeast

Dan Corbin joined the PIA team in 1992 and is the association’s director of research. His insurance background spans 45 years, with varied experience as agency owner, commercial service representative, producer, personal-lines manager and insurance specialist for a mortgage lender. Each year, he responds to approximately 800 technical inquiries from members. Dan is a member of the Chartered Property Casualty Underwriter Society and the Society of Certified Insurance Counselors. On Jan. 1, 2021, he became a contracted provider of membership services.

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