NY Construction Classification Premium Adjustment Program

Effective April 1,1993, the NY Construction Classification Premium Adjustment Program was introduced to develop a credit for those employers who pay higher hourly wages for construction operations. Its purpose was to address premium differences between high–wage and low–wage–paying employers having similar construction operations. This program was approved by the Department of Insurance and adopted by the New York Compensation Insurance Rating Board.

Employers may be eligible for a credit that ranges between 1% and 35%, depending on their average hourly wage. It is important to complete the application for this premium credit program carefully and accurately in order to ensure that the appropriate credit is given on premium. To qualify for the premium adjustment program, a construction industry employer must have coverage that:

• • Includes one or more eligible construction classifications:
    

    0042	5069	5223	5479	5610	6204	6319	9534
    3365	5102	5348	5480	5648	6216	6325	9539
    3724	5160	5402	5491	5651	6217	6400	9545
    3726	5183	5403	5506	5701	6229	6701	9549
    3737	5184	5428	5507	5703	6233	7536	9553
    5000	5188	5429	5508	5709	6235	7538
    5022	5190	5443	5536	6003	6251	7601
    5037	5193	5445	5538	6005	6252	7855
    5040	5213	5462	5545	6017	6260	8227
    5057	5221	5473	5547	6018	6306	9526
    5059	5222	5474	5606	6045		9527

• • Has an average hourly wage of $23.25 in at least one of the above listed classifications
  • Is experience–rated

A credit is determined on payroll and hours worked for each construction classification, for the third calendar quarter of the year preceding the policy inception date. NYSIF will send a notice to eligible employers approximately four months before the upcoming renewal date of their policy. Upon completion, applications should be returned to the Rating Board, and a copy should be sent to Lovell. The Rating Board will process applications starting approximately 3 months prior to the renewal date.  Any application submitted subsequent the renewal date must be accompanied by a letter explaining the reason for the delay. Applications received more than 12 months after the policy renewal will NOT be accepted even if accompanied by a late letter.

Employers are required to submit applications (Blank CPAP Application Form) for each of their workers’ compensation policies, if they had more than one for separate jobs, (ex: wrap-up, OCIP policies, combinable policies for experience rating purposes) in lieu of one application encompassing all of their policies. For information on this program, or for answers to questions about the premium credit application, please call our Underwriting Department at 212-709–8650.