Workplace accidents are never infrequent enough. An injured employee endures pain and suffering and loses income. Your business loses productivity and skills on the job. And your workers’ compensation insurance costs likely will rise.
With most New York State construction firms already straining to keep up with contract backlogs, it’s important that you think strategically about workers’ comp – including the costs it incurs protecting your employees and your bottom line.
Rate Changes to Decline up to 22.9%
Marshall+Sterling is happy to announce to its clients that on July 15, 2024, the New York State Department of Financial Services approved an average Workers’ Compensation Insurance rate decrease of 9% for new policies or renewal policies issued on or after October 1, 2024. This represents the ninth straight year that the Department approved the loss cost change recommended by the Rating Board’s Actuarial Committee.
For the New York State Construction Industry, the rate change ranges from a decrease of 22.9% to an increase of 7.1% (this is based on the 49 more common construction classifications). Of the most used construction classes, eight are increasing and one remains the same.
Click on this link to view the Summary listing of Workers’ Compensation Classification Codes and their corresponding manual loss cost increases and decreases. The rates reflected on the document are the Loss Cost Rate and NOT the final policy rates that will be reflected in your Workers’ Compensation Insurance Policy. However, the increases and decreases reflected will provide you with an idea of how your own rates will increase or decrease.
Additional Steps Your Company Can Take to Reduce Workers’ Comp Costs
You can take even greater control of your workers’ comp costs by ensuring that your firm has:
- A written and up-to-date safety plan. Make certain that your plan incorporates the OSHA requirements for construction.
- A site-specific safety plan. Not every construction site is the same. There are different hazards based on the location, the materials being used and the work being done.
- A “safety first” workplace culture. It’s one thing to have a safety plan. Having a workforce who understands the importance of the plan and how it protects themselves and their colleagues is critical to the plan being effective.
- A plan to train employees early in their employment, and often after that. The majority of construction accidents, injuries and fatalities involve employees with less than a year of experience. Ensuring that your employees and leadership understand the risk early on will help your business avoid incidents.
If you need the rates for a class not listed or have any questions, please do not hesitate to contact Kevin Viaña at 845-454-0800 x2232 or Stefanie Little, at 845-454-0800 x2226.
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