For employers
What workers' comp costs in New York — and how to lower it
New York is one of the more expensive states for workers' comp, but premium isn't a mystery: it's driven by your payroll, your industry classification, and your claims history. And rates are actually falling — a roughly 22% cut takes effect October 1, 2026.
- Premium is based on payroll, not headcount — a rate per $100 of payroll for your class code.
- New York rates drop about 22% (21.9% as filed) effective October 1, 2026 — ~$1 billion in savings, ~$1,779 per policyholder.
- NY is among the most expensive states; the national median is about $1.09 per $100 of payroll and NY sits well above it.
- NYSIF must insure any employer that applies — the guaranteed insurer of last resort.
Four ways to get covered
- A private carrier authorized by NY's Department of Financial Services.
- The NY State Insurance Fund (NYSIF) — a not-for-profit state fund that must cover any employer that applies, regardless of industry, size, or safety record.
- Individual self-insurance — Board approval plus a large security deposit (about $2 million minimum as of 2026).
- Group self-insurance — industry pools, but the program is closed to new groups.
How your premium is calculated
- Classification code: NYCIRB assigns your business a class code (600+ of them) based on your line of business.
- Rate per $100 of payroll: NYCIRB files a "loss cost" for each class; your carrier applies its own multiplier for expenses and profit.
- Payroll: multiply the rate by your gross payroll (wages, overtime, bonuses) per $100.
- Experience modification (X-mod): your claims history vs. similar employers — better-than-expected earns a credit, worse a debit.
- Then adjustments: assessments, program credits, and safety-group discounts.
What it actually costs
Cost scales with risk. Low-hazard office/clerical work runs well under the average; high-hazard trades run many times higher.
| Type of work | Approx. cost per $100 payroll |
|---|---|
| National median (all states) | ~$1.09 |
| Clerical / office (low-risk) | ~$0.75–$1.50 |
| General range across industries | ~$2.50–$15+ |
| Construction / roofing (high-risk) | can exceed $20 |
These are third-party estimates, not filed rates, and predate the October 2026 reduction. The authoritative figure for your business is the NYCIRB filed loss cost for your specific class code times your carrier's multiplier. There is no meaningful single "per employee" cost — it depends on payroll and classification. See the system-wide numbers on by the numbers.
How to lower your premium
- Classify correctly — make sure payroll is coded to the right (and lowest legitimate) class codes.
- Manage your X-mod — fewer and smaller claims directly cut premium.
- Join a safety group — NYSIF safety-group members can get an upfront discount (up to ~35%) plus year-end dividends (not guaranteed).
- Run a return-to-work program (Code Rule 60) for a premium credit and faster claim closure.
- Remember DB & PFL — disability benefits and paid family leave are usually bundled with the WC policy.