New York has approved a 22% reduction in workers’ compensation insurance premium rates, which the state says represents an estimated savings of more than $1 billion for businesses or an average of $1,779 per employer in the state.
The loss cost rate reduction was approved by the New York State Department of Financial Services (DFS) and will take effect on October 1, 2026.
The state’s workers’ compensation premium rates have steadily declined since 2020, with approved rate decreases averaging 10.3% annually over the six-year period.
The latest reduction in insurance costs is in addition to a reduced employer assessment rate to cover the costs of the New York State Workers’ Compensation Board. For calendar year 2026, the rate is 7.0% of the standard premium.
Additionally, the state’s largest workers’ compensation insurer, the New York State Insurance Fund, has distributed more than $700 million to its policyholders over the past year through dividends and discount programs.
The 22% loss cost rate reduction was made possible in part due to lower frequency of lost time claims over the past three years, along with enhanced workplace safety efforts, according to the state.
According to a biennial analysis by the Oregon Department of Consumer and Business Services, New York had among the highest workers’ compensation rates in 2024. The study showed Hawaii had the most expensive rates, followed by New Jersey, New York and California. Meanwhile, North Dakota had the least expensive rates.
In 2025, Gov. Kathy Hochul proposed several reforms to improve access to the workers’ compensation system. Those enacted into law include provisions allowing resident and fellow physicians at teaching hospitals to treat workers’ compensation patients under faculty supervision; allowing insurers to pay for an injured worker’s medical care for up to one year without legally admitting liability, thereby helping to avoid delays while claims are under review; and allowing all eligible, licensed healthcare providers to treat workers’ compensation patients without needing separate NYS Workers Compensation Board approval. These measures are awaiting regulations or have future effective dates.
In 2024 the state enacted legislation to expand workers’ compensation benefits to people who are facing job-related mental health crises. That went into effect January 1, 2025,
Topics
New York
Talent
Workers’ Compensation
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