NYS Workers’ Comp Rates to Fall
Sharply Beginning on October 1
ALBANY—New York State officials announced recently that insured employers statewide will see, on average, a 22% reduction in workers’ compensation insurance premium rates, an estimated savings of more than $1 billion for businesses or an average of $1,779 per policyholder in New York State.
The rate reduction was approved on July 15 by the New York State Department of Financial Services and will take effect on Oct. 1, 2026. In New York State, workers’ compensation premium rates have steadily declined since 2020, with approved rate decreases averaging 10.3% annually over the six-year period, state officials noted.
In addition, the New York State Insurance Fund has distributed more than $700 million to its policyholders over the past year through dividends and discount programs that lowered the cost of workers’ compensation and disability benefits for New York businesses.
The total included $698 million in dividends and discounts for more than 100,000 employers in workers’ compensation safety groups and $2.9 million in dividends for more than 27,000 policyholders with disability benefits coverage through NYSIF.
There have been significant decreases in the frequency of workers’ compensation lost time claims which has resulted in reduced premium rates over the past three years. Enhanced workplace safety efforts such as the Warehouse Worker Protections Act, have contributed to the decline in the frequency of workers’ compensation claims, state officials noted.
“One of the key pillars of my administration has been to reduce costs for New York’s businesses and with over $1.7 billion in savings for employers and policyholders, we are making life more affordable for everyone,” Gov. Kathy Hochul said. “This reduction is going to be monumental in helping New York’s employers operate and grow their businesses while ensuring their workers have access to the benefits they need.”
Published: July 22, 2026.