Overall loss costs for Workers’ Compensation (WC) insurance in New York will decrease by an average 13.2%, according to the New York Compensation Insurance Rating Board. The change in loss cost levels applies effective October 1, 2025.
This is the ninth consecutive year that WC insurance loss costs have decreased in New York.
Loss costs are not premium rates. They reflect the expected cost of paying losses plus adjustment expenses. Each insurance provider, including the New York State Insurance Fund, applies a factor known as a loss cost multiplier (LCM) to a loss cost to determine the rate. The LCM increases the loss cost to account for insurer overhead and expected profit. The New York State Department of Financial Services reviews and approves filed LCMs for each private insurance carrier.
The minimum weekly payroll for most corporate executive officers and all sole proprietors and partners will increase from $925 to $975. The minimum weekly payroll for executive officers of not-for-profit unincorporated associations will rise from $475 to $500. The maximum weekly payroll for non-construction executive officers, sole proprietors and partners will increase from $2,775 to $2,950. The maximum weekly payroll for non-construction employees other than executive officers will increase from $7,400 to $7,825.
The maximum weekly payrolls for construction executive officers and employees was set at $1,833.63 effective July 1, 2025.
The board also announced revised factors to be used in the experience rating formula for employers subject to the experience rating plan. These changes also take effect on October 1.