The Flanders Group provides various Workers’ Compensation services to our clients in specific industries such as real estate owners and managers who also have a construction exposure. The New York Construction Classification Premium Adjustment Program, or CPAP, is available to our clients who may be paying more for Workers’ Compensation simply because their businesses pay higher wages than others in the industry.
The CPAP was implemented by the NYCIRB (N.Y. Compensation Insurance Rating Bureau) in 1993 to address premium differences between high wage and low wage paying employers in the construction industry. At that time high wage employers were paying a disproportionately high premium for their Workers’ Compensation insurance than low wage employers even though they performed similar work with similar risk to injury on the job.
This program attempts to close the premium differential by granting credits on policies based on the hourly wage paid by employers. The higher the wage paid, then the higher the credit, which offsets the disparity in payrolls and allows for a more equitable premium charge for all employers in the same trades.
If you feel as though your company is paying too much for Workers’ Compensation insurance just because you pay higher wages to your employees, contact The Flanders Group today. We can help you apply for CPAP, as well as find other areas where you can manage risks.