The New York State Department of Financial Services has approved a redesign of the Classification Premium Adjustment Program (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 is 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- Credits will now be based on actual employee wages from the policy period, rather than outdated wage data.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 Should You Do
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.
Stay informed: Visit the NYCIRB Learning Center for tools, videos, and the CPAP Estimator.
Reach out to Brett Findlay, SVP, Business Risk Specialist, at BFindlay@OneGroup.com for more information on the change to NYS CPAP.
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.