Steven Bell, Vice President, Lovell Safety Management Co., LLC
If you’re a contractor in New York, you’ve likely heard of the Construction Classification Premium Adjustment Program (CPAP). For years, CPAP has provided a way for contractors who pay higher-than-average wages to receive premium credit on their workers’ compensation policies. The goal has always been simple: rewarding employers who invest in skilled, highly compensated workers.
Beginning with policies effective October 1, 2025, and later, the New York Compensation Insurance Rating Board (NYCIRB) is rolling out a redesigned CPAP. These changes will impact on how credits are calculated, how data is collected, and how contractors can ensure they don’t miss out on valuable premium savings.
Lovell is committed to making sure our contractor clients understand the changes, meet the new requirements, and receive every dollar of credit they’re eligible for. Here’s what you need to know.
Why the Change?
The old CPAP process relied heavily on employers filling out applications and submitting wage information once a year. Participation wasn’t as high as it should have been, and the single wage threshold didn’t always reflect the realities of today’s construction market.
The NYCIRB redesigned CPAP to:
- Increase participation by making it automatic through the audit process.
- Shift the burden to carriers, reducing paperwork for contractors.
- Better compensate wage differences by applying credits at the class code level, not across the board.
In short: this is a modernization of CPAP that should make it easier for more contractors to benefit.
What’s Changing in CPAP
Here are the key updates contractors need to keep in mind:
- No More CPAP Application
You won’t have to apply for CPAP anymore. Instead, carriers (like NYSIF) will gather wage and hour data during your audit and submit it to the NYCIRB automatically. - Credits Based on Annual Payroll
Instead of looking at a single quarter, credits will now be based on your entire year of payroll data, making results more accurate. - Class Code-Specific Wage Thresholds
Gone are the days of one-size-fits-all wage tables. Credits will now be calculated for each eligible class code, using average hourly wages compared to prevailing NYS Department of Labor rates. - Estimated Credits at Quotation
For the first time, carriers will calculate an estimated CPAP credit up front at the time of quotation, provided you submit the required data. - Final Credit Determined at Audit
Just like with other parts of your policy, the final CPAP credit will be determined after the annual audit when your actual payroll and hours are verified. NYCIRB will finalize the number, and it will be applied at that point.
How Contractors Can Secure Their CPAP Credit
While CPAP is now built into the system, there are still important steps you’ll need to take to make sure your estimated credit is applied before your audit.
Deadlines Matter
To have your estimated credit applied and your policy rebilled before audit, you must:
- NYSIF policyholders must submit your CPAP estimate within 6 months of your policy’s effective date.
- If you miss this deadline, your credit will only be applied once the final audit is completed.
What You’ll Need to Submit
To calculate your estimate, contractors will need to provide:
- Total payroll (straight time only) for all class codes.
- Number of employees for CPAP-eligible class codes and/or
- Average hourly wage for each CPAP-eligible class code on the policy.
Two Submission Options
Lovell and NYSIF are making it simple:
- Complete the Excel spreadsheet provided by Lovell, or
- Use the NYSIF Online CPAP Estimator.
How Lovell Is Helping
At Lovell, we know how valuable these credits can be for contractors. That’s why we’re taking a proactive approach:
- Advance Notices – About 60 days prior to renewal, we’ll be sending notices (with the payroll spreadsheet attached) to clients who may qualify.
- Hands-On Guidance – Our team will be available to help you complete the spreadsheet, use the estimator, and ensure your data is submitted correctly.
- Ongoing Support – If there are any discrepancies between your estimate and what NYCIRB calculates at audit, we’ll coordinate with NYSIF on your behalf.
The bottom line: while CPAP is changing, you won’t have to navigate it alone.
What Contractors Should Do Now
Right now, no action is required. But as October 1, 2025 approaches, contractors should:
- Stay tuned for updates. Lovell will continue to provide guidance as NYCIRB finalizes implementation details.
- Gather payroll records. Accurate data will be the key to securing your CPAP credit.
- Be ready to respond. When you receive Lovell’s notice and spreadsheet, complete it promptly so you don’t miss the six-month window for an estimated credit.
Why This Matters for Contractors
Construction margins are often tight, and workers’ compensation is a significant expense. CPAP credits can add up to real savings—sometimes thousands of dollars annually—for employers who pay competitive wages.
The redesigned program is intended to make those savings more accessible and better aligned with today’s labor market. By working with Lovell and providing the right data on time, you can make sure you capture every bit of credit you deserve.
Final Thoughts
The new CPAP program is a positive change for New York contractors. It reduces paperwork, provides more accurate credits, and ensures high-wage employers are rewarded. But the new system also comes with new deadlines and data requirements that can’t be overlooked.
Lovell is here to guide you every step of the way—from sending the right forms to coordinating with NYSIF and ensuring your credit is applied.
Effective October 1, 2025, CPAP changes the game. Make sure you’re ready to play —and to save.
If you have questions about how these changes may impact your business, don’t hesitate to reach out to a Lovell representative at 1-800-556-8355.