New York makes important changes to the Construction Classification Premium Adjustment Program (CPAP) and becomes effective on October 1, 2025.
The New York State Department of Financial Services has approved a redesign of the CPAP to improve fairness, accuracy, and participation. These updates affect all eligible construction policies with effective dates on or after October 1, 2025.
What Is CPAP
The CPAP provides premium credits to construction employers who pay higher-than-average wages, helping to offset workers’ compensation insurance costs.
What’s Changing
The redesigned CPAP addresses long-standing issues and introduces several key improvements:
- No More Employer Applications
Employers will no longer need to apply. Instead, CPAP data will be collected during the premium audit process, streamlining participation. - Real-Time Wage Data
Credits will now be based on actual employee wages from the policy period, rather than outdated wage data. - Pre-Quote Credit Estimates
Carriers can now estimate CPAP credits before quoting a policy using the new CPAP Estimator tool. - Wage/Credit Table Overhaul
The wage/credit table will be benchmarked against New York State prevailing wages, ensuring high-paying employers receive appropriate credit. - Class Code Differentiation
Credits will vary by construction class code, recognizing that wage levels differ across trades.
Why This Matters to You
- Simplified Process: No additional application process, this will be streamlined at audit.
- Fairer Credits: Your premium credit will better reflect your actual wage practices.
- Better Planning: With pre-quote estimates, you can budget more effectively.
What You Should Do
Stay informed: Visit the NYCIRB Learning Center for tools, videos, and the CPAP Estimator.
Prepare for audit: Ensure accurate wage records are maintained throughout the policy period.
Talk to your OneGroup representative: Ask how the new CPAP may impact your premium.
Contact Us
For more information or any questions on the CPAP reach out to our Risk Management Team.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.