Brett Findlay, Vice President, Business Risk Specialist, OneGroup
Overview of 2025 Workers’ Compensation Changes in New York State
New York State continues to see positive trends in workers’ compensation. For the tenth year in a row, an aggregate rate decrease is expected. Additionally, the New York State Assessment dropped again in January 2025. With these encouraging trends setting the tone for 2025, let’s take a closer look at the specific updates to workers’ compensation rates and assessments that could impact employers across New York State.
Upcoming Rate Reduction
On May 8, 2025, the Board of Governors for the New York Compensation Insurance Rating Board (NYCIRB) announced they voted to file their annual loss cost indication with the New York State Department of Financial Services. This filing, once reviewed and approved, will take effect on October 1, 2025.
The proposed change reflects a 13.2% average decrease in the overall loss cost (or rate) level. This figure is based on NYCIRB’s standard ratemaking methodology and applies to policies renewing on or after the effective date.
However, this 13.2% reduction is an aggregate average—the actual impact will vary depending on the classification codes used in your policy. Some businesses may see more significant savings, while others may experience smaller changes or even increases depending on their specific risk profile and claims history.
The workers’ compensation market remains soft overall, but volatility continues due to the experience modification rating (EMR) formula changes introduced in 2022. These changes can significantly affect individual policy premiums, especially for businesses with fluctuating claims experience.
If you have questions about how these changes might affect your policy or renewal timeline, consider reaching out to OneGroup and see if they can help you review your coverage and workers’ compensation plan.
Policy Timing and Planning
These rate changes only apply to policies renewing on or after October 1, 2025. If your policy renews before then, the new rates won’t apply until your next renewal. It’s a good idea to review your classifications now to better forecast future costs.
New York State Assessment Decrease
In January 2025, the New York State Assessment rate dropped from 9.2% to 7.1%, marking the largest single-year reduction in several years. This assessment is a mandatory surcharge applied to all workers’ compensation policies in New York to fund the state’s Workers’ Compensation Board and related programs.
This latest decrease continues a multi-year trend of declining assessment rates:
• 2021: 11.8%
• 2022: 10.2%
• 2023: 9.8%
• 2024: 9.2%
• 2025: 7.1%
Since 2021, the assessment rate has dropped by nearly 40%, resulting in a cumulative reduction of almost 20% in aggregate costs to policyholders. This trend reflects improved system efficiency and reduced administrative costs at the state level.
For employers, this means lower overall premium costs, even before factoring in the upcoming rate reductions. However, the actual savings will depend on your total payroll, classification codes, and claims history.
If you’re unsure how this impacts your current or future premiums, contact us we can help you analyze your policy and identify opportunities for savings.
What This Means for Contractors
These changes can significantly impact your insurance costs. For personalized guidance, reach out to OneGroup’s team of specialists dedicated to risk management and construction industry insurance.
For more information on renewing your insurance, you may reach out to Brett Findlay at 315-280-6376 or by email at BFindlay@OneGroup.com