The 2008 NYS Worker Compensation reform brought about significant changes in the way carriers determine NYS Workers Comp rates. In 2008 NY State Workers Comp Board went to a loss cost rating system. A  loss cost rating system allows carriers to add a surcharge or LCM (loss cost multiplier) to the State recommended “Base Rate” for each class code. Therefore each carrier licensed to provide NY State Workers Comp Insurance can have a different rate for the same class code. The State no longer allows the carriers to discount.

Three years after the reform and many small business owners don’t realize that they need to look to other carriers for a better rate. The Workers Comp rates are no longer the same for each insurance company.  Policy holder can obtain better pricing by shopping their policy to several different carriers. When determining a new carrier the business owner should ask: What is the base rate for the class codes that apply to my business? And What is the Workers Comp Insurance Carriers’  LCM(loss Cost Multiplier?

NYS Worker Compensation rates and class codes can vary depending on the carrier and their appetite for risk. To view some example for carriers and the LCM rating system