New York Workers’ Comp Rates Going

Premiums for workers’ compensation insurance in New York will drop 5 percent in 2009, marking the second straight annual decline since landmark reform legislation was passed in 2007.

The drop in rates follows a 20.5 percent decrease in 2008, a total reduction of about 25 percent from pre-reform rates. Maximum weekly benefits for workers have also risen, increasing to $550 per week. Those benefits are set to continue rising until 2010, when they will be indexed at two-thirds of the average weekly wage.

Gov. David Paterson credited reforms agreed upon last year for the drop. “Last year’s historic agreement set the framework for workers’ compensation reform, but the savings are actually produced through the difficult work of developing and implementing the proposals,” Paterson said. “We have made progress. Two years ago, New York had one of the most expensive workers compensation programs in the country. Now, we have one of the least expensive. We still need to do more and I am committed to ensuring that this reform program makes New York a better place to do business and a safe and secure place to work.”

The reforms enacted include a streamlined system for resolving claims, and increased fraud investigation and compliance actions. The related reform proposals are being developed by the Workers’ Compensation Board, the Department of Labor and the New York Insurance Department, which also approves the rates for workers’ compensation insurance.

The lower rates take effect beginning October 1.

Topics New York Workers' Compensation