There are several areas of New York Work Comp that will see big changes effective 10/1/15:
Experience Modification Factors: An Experience Modification Factor represents your company’s actual losses compared to the expected losses by industry type. For the 2016 mod, losses for the years 2012, 2013, and 2014 will be included. Workers Compensation claims are “split” into primary and excess losses for the purposes of calculating your Experience Modification Factor.
For mods calculated after 10/1/15 the split point limit for primary losses is being raised to $15,000 from $10,000. That means the first $15,000 of each Work Comp claim will weigh more heavily in your experience modification calculation.
Loss Cost Factors: The New York State Department of Financial Services has announced an average loss cost increase of 5.9% has been approved for Work Comp policies with rating anniversaries 10/1/15 and after. The specific rates by classification code are available from your insurance company or agent.
Executive Officer Payroll: Covered executive officers, individual owners, and partners will be subject to minimum payroll of $35,100 and a maximum of $104,000.
There are a number of steps you can take to be sure you don’t overpay once these Work Comp changes go into effect:
- Have an Experience Modification Analysis performed and review the results to determine how this split point change will impact your premium.
- Find out what your new rates will be at renewal for each classification on your policy to avoid any “surprises”.
- Verify how your payroll is being classified for your executive officers to be sure they are under the correct code for the work they perform.
For more information about controlling the cost of Workers Compensation, call The Flanders Group at 800-462-6435.