New York no longer charges purely on rate per $100 of payroll. While that is still the end mechanism, how they get to that number is where the magic and transparency happens. A few years back, NY State went to what is called a Loss Cost system. This is essentially where the NY Compensation Rating Board files a Loss Cost for each payroll classification in New York State.  It is a specific rate/number that all employees who perform that class of business in NY State must be charged per $100 of payroll.  It is a fixed number that cannot be deviated from if they are licensed and admitted in NY State.

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However, because these carriers have lower “rates” for various classes of business, you may not be offered a quotation by them due to their underwriting standards. There is also an additional pricing component that is not contemplated here called discounting. The carriers may discount further off these published rates and/or have a mechanism to provide a dividend to certain customers.

It has been our experience that when a carrier’s loss cost variance are lower all else follows as it can be a powerful predictor for who can offer us the most competitive workers compensation quotes. Fill out the form and find out who has the best workers comp rates in NY and where you stand!

From there, each insurance carrier files a variance with the Rating Board to be applied to the issued Lost Costs to account for their expenses and profit. By knowing the filed variances for each carrier, we can substantially narrow down who has the best or better rates within the state.  We can therefore focus on these companies enabling us to cut to the quick in terms of getting you a cost efficient price quotation from a competitive carrier.