NY Workers Comp Loss Cost Proposed 16.9 % increase by NYCIRB
On June 25, 2013 the NYCIRB or NY Workers Comp Insurance Rating Board held a hearing to propose a 16.9% loss cost increase. After the 2007 Workers Comp reform NY Worker Comp went to a Loss Cost Filing system. Which in simple terms means that the NYCIRB determines a base rate or Loss Cost Rate for each class code. These rates are determined based on actuarial data provided to the Board bases on past claims performance of each class. The carriers approved to do business in NY add a multiplier on top of that rate. These Multipliers range form .98 to 1.50 and higher. These are the rates you ultimately see on your policy.
NY Workers Comp Lost Cost increase what will this mean for Business Owners?
As of today the final rate increase is not settled but all signs point to a 9.4% over all increase. Typically this is an average. Some NY Workers Comp classes of businesses will be hit harder than others and some will be decreased. But on average the small business owner can expect their rate to go up.
NY Workers Comp why is this happening?
The request for a rate increase is due to continued adverse experience of NY Workers Comp Carriers. The NYCIRB says the increase is a direct result of the following factors:
- Continued rise in medical Costs
- The average length of lost time claims or Indemnity Claims has increased
- Transfer o costs to carriers due to the closing of the Reopened Case Fund
- Increase in the minimum and Maximum weekly Benefits
- NY Workers Comp
NY Workers Comp what can a small business do?
Now more that ever it is imperative to evaluate your performance. If you are going to control your NY Workers Comp costs. Take stock of the potential pitfalls and safety hazards of your organization. Have a plan to be a safe company. Have a plan once an accident happens to minimize the cost of that loss. The best performing businesses will ultimately get the best price on their NY Workers Comp insurance and remain competitive and ultimately increase profitability. Contact us for assistance in evaluating your performance and see where you are compared to your competitors. Enforce Coverage Group helps business owners control and limit risk resulting in lower costs and increased profits.