Good news for New York business owners with workers comp coverage in 2015. The NY workers comp assessment rate will drop by .6 percent. The decrease from 13.8 percent to 13.2 percent may seem rather small, but the expected overall savings for all employers actually totals $45 million.
So just how does the Business Relief Act help with lowering New York workers compensation insurance costs? Basically, it standardizes and corrects the antiquated and disjointed assessment process. With the new assessment procedures in place, every employer is charged based on the same uniform methods, which in turn, lead to lower assessment charges for all businesses.
It’s important to note that the assessment rate change is very different from the rates you pay by class code for your particular industry. Workers comp assessments are actually charges made to insurance carriers. These charges are then passed on as surcharges to employers on their annual premiums.
This rate assessment adjustment comes from the 2013 Business Relief Act signed into law by Governor Cuomo. So far, the Act has successfully achieved its overall goal of reducing workers comp assessments by a total of 30 percent within a two year period.
In his announcement about the assessment change in late October 2014, Cuomo stated that one of his top priorities is to help reduce the cost of doing business in the state. This workers compensation reform is one measure that he believes helped to lower workers comp costs two years in a row. See the Governor’s formal announcement here.
The previous assessment change for 2014 saved $170 million for administrative costs with this 2015 change bringing an additional $45 million of savings for New York employers.
Assessment changes are one way to see reduced cost on your workers comp policy. Shopping for rates from other insurance companies can also help. Our preferred workers comp providers can help you find additional savings on your insurance policy. Give us a call to get a quote or fill out our workers comp questionnaire here to get started today.