New York State continues to experience favorable workers’ compensation trends, with another year of loss cost relief approved. This marks the eleventh consecutive year of loss cost decreases.
By Brett Findlay, ARM, CRIS – SVP, Construction Practice Leader
As part of my annual workers’ compensation update, I highlight the key changes and trends that New York employers should be aware of in the year ahead. The New York State Assessment decreased again in January 2026, continuing a trend of relief for employers. With these encouraging developments setting the stage for 2026, let’s take a closer look at the workers’ compensation rate and assessment changes that may impact employers across New York State.
Upcoming Rate Changes
On May 7, 2026, 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 or NYSDFS. This filing, was reviewed and approved by the NYSDFS, on July 15, 2026. The loss cost decrease will take effect on October 1, 2026, and represents a double-digit aggregate rate decrease.
The approved change reflects a 21.9% 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 21.9% reduction is an aggregate average, meaning that, 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. Essentially, loss history is impacting EMR’s to a greater level, penalizing poor loss histories and rewarding top performers. In addition, carriers may look to reassess their loss cost multipliers and discounts which could offset loss cost savings.
If you have questions about how these changes might affect your policy or renewal timeline, consider reaching out to your insurance broker. They can help you review your coverage and workers’ compensation plan. OneGroup is happy to walk you through the changes specific to your policy as well.
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.
Now is an ideal time to review your classification codes to better anticipate and budget for future workers’ compensation 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. In 2026, the assessment decreased again from 7.1% to 7.0%. The 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:
| Yearly Trend | Assessment Rate |
|---|---|
| 2021 | 11.8% |
| 2022 | 10.2% |
| 2023 | 9.8% |
| 2024 | 9.2% |
| 2025 | 7.1% |
| 2026 | 7.0% |
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.
What This Means for Contractors
Changes to workers’ compensation rates and assessments can have a meaningful impact on your insurance costs and overall risk management strategy. At OneGroup, our team of dedicated risk management and insurance professionals works closely with employers to address complex workers’ compensation and construction industry challenges. Whether you need guidance on classifications, experience modification factors, claims management, or broader risk management initiatives, we’re here to help. Learn more about our team or our construction industry expertise.
For more information or support on this topic, contact Brett Findlay, SVP, Business Risk Specialist, directly at BFindlay@OneGroup.com.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.