In New York, workers compensation cost comes down to three things: how much payroll you have, the type of work your employees do, and your history of claims. New York is a filed loss-cost state, which means an independent rating board publishes base costs by type of work and each insurer adds its own markup, so the same business can get different quotes from different carriers.
Who this is for: New York owners who want to understand what drives their workers comp premium and how to keep it in check. Workers comp pays an injured worker's medical bills and part of their lost wages.
The short version
- Payroll drives it: premium is calculated per $100 of payroll, so more payroll means more premium.
- Your trade matters: the category your work falls into for pricing, called the class code, sets the base cost.
- Claims history adjusts it: a score based on your past claims can raise or lower the price once you are large enough to qualify.
- Carriers differ: New York publishes loss costs, but each insurer adds its own multiplier, so quotes vary.
- Rates are falling: as of mid-2026, New York loss costs have been decreasing for years.
What actually drives the price
Three inputs do most of the work. Understanding them helps you see why two businesses on the same street can pay very different premiums.
| Cost driver | What it is | Why it matters |
|---|---|---|
| Payroll | Your gross wages, rated per $100 | The premium base; larger payroll means more premium |
| Class code | The category your work falls into for pricing | A roofer's base cost is far higher than an accountant's |
| Claims history | A score from your past claims, the experience modification rate | Once you qualify, good history lowers cost and bad history raises it |
| Carrier markup | Each insurer's own loss-cost multiplier | Why the same risk gets different quotes |
How New York sets base costs
New York does not use the same national rating bureau most states use. Instead, the New York Compensation Insurance Rating Board (NYCIRB) files advisory loss costs by class of work with the Department of Financial Services, and each carrier applies its own multiplier to turn those loss costs into the rate you pay. That is why shopping matters: two carriers start from the same published loss cost but land at different prices.
As of mid-2026, the trend has been downward. New York loss costs reflect an average decrease of about 13 percent for policies on or after October 1, 2025, and the rating board has proposed a further average decrease of about 22 percent for October 1, 2026, which is pending state approval. Loss costs are not final rates, but a falling trend generally helps buyers.
How to keep your premium down
The biggest controllable factors are classification and claims. Making sure your payroll is reported under the correct class codes prevents you from overpaying for years, since a wrong code can push you into a higher-cost category. Reducing claims and their cost lowers the score that adjusts your price once your business is large enough to be rated on its own history. We review both before you buy and again at each renewal. See class codes and the experience rating.
A quick New York example
Illustrative, not a quote. An HVAC company in White Plains has three installers and one office manager. The installers fall into a higher-cost class code because the work is physical, while the office manager sits in a low-cost clerical code. When the company first shopped, a broker lumped the office manager in with the installers, and the quote came back high. On review, splitting the payroll into the correct codes cut the premium meaningfully, because the clerical wages were no longer priced like rooftop work. Comparing several carriers, each with its own multiplier, brought the number down further.
Real questions New York owners ask
What determines my workers comp price in New York?
Mainly three things: your payroll, the type of work your employees do, and your claims history. Premium is figured per $100 of payroll, and your trade sets the base cost through its class code.
Why did two carriers quote me different prices for the same business?
New York publishes base loss costs, but each insurer adds its own multiplier on top. That markup varies by carrier, so identical information can produce different quotes. Shopping several carriers is how you find the best fit.
Are New York workers comp rates going up or down?
As of mid-2026, they have been trending down. Loss costs fell on average for policies on or after October 1, 2025, and a further average decrease has been proposed for October 1, 2026, pending state approval.
Why does the type of work my crew does change my price so much?
That comes down to your 'class code', the category your work falls into for pricing. Each category carries its own base cost, so a physical trade costs far more to insure than clerical work. Reporting payroll under the right codes keeps you from overpaying.
How does my claims history change the price?
Once your business is large enough to qualify, you get a score based on past claims that adjusts your premium up or down. Fewer and smaller claims lower it over time, which is why safety and claim handling pay off.
Can I lower my premium without cutting coverage?
Often yes. Correct classification, splitting out clerical payroll, reviewing your claims score for errors, and shopping multiple carriers can all reduce cost without reducing protection. We check each of these before you buy.
Does part-time or seasonal payroll cost less to cover?
Yes. Because premium is based on payroll, a smaller part-time or seasonal payroll generally means a smaller premium for the same type of work. You are charged on what you actually pay out.
Why New York owners choose Morrow
- We shop the right market for you. New York is an open, competitive market: you can buy coverage from any private carrier the state authorizes or from the state-run New York State Insurance Fund (NYSIF), so Morrow shops multiple insurers to find the best fit instead of leaving you with a single option.
- We catch pricing mistakes. Your price depends heavily on the category your work falls into for pricing (the class code). Put people in the wrong category and you overpay for years. We review your payroll and classifications before you buy.
- Proof of coverage, fast. Need a certificate (proof of coverage) for a general contractor or a landlord before Monday? We turn those around the same business day for most carriers.
- We help lower the score that drives your price. Insurers give you a score based on your past claims that raises or lowers your cost (the experience modification rate). We review it each year, flag errors, and connect you with return-to-work and safety resources that bring it down.
- Real people when a claim happens. When someone gets hurt, we stay involved through the life of the claim, not just at renewal.
Related New York guides
Every New York business is set up a little differently. These companion guides answer the same question for other situations, plus the national explainers behind the terms used here.
- Business insurance in New York (start here)
- Workers comp: the owner's overview
- I own an LLC: do I need workers comp?
- I'm a sole proprietor: do I need workers comp?
- I own a corporation (C-corp or S-corp): do I need it?
- We're a partnership: do we need workers comp?
- We're a nonprofit: do we need workers comp?
- My workers are 1099: do I still need it?
- Only part-time or seasonal staff: do I need it?
- I only employ family: do I need workers comp?
- Remote or out-of-state staff: do I need coverage?
- What happens if I don't carry workers comp?
- How do I get workers comp (even if turned down)?
- What insurance do I need for a contractor license?
- Workers compensation insurance, explained
- What workers comp costs (national guide)
- Glossary: workers comp class code
- What is an experience mod, and how do I lower it?
- HVAC workers comp in New York
This guide is general information, not legal advice. New York rules and penalty amounts can change, so verify current requirements with New York State Workers' Compensation Board or a licensed advisor before you rely on them. Last updated: July 2026.