Workers’ Compensation Rates Continue to Decline as Safety Groups Deliver Even Greater Value

Steve Bell, Lovell Safety Management
Vice President Underwriting & Sales

Effective October 1, 2025, New York State workers’ compensation rates are once again dropping, continuing an extraordinary trend of cost reductions for employers. This marks the ninth consecutive year of statewide rate decreases. On average, loss costs will decline by an additional 13.2% across all class codes. As always, actual changes will vary by industry and classification.  At a time when inflation is still pressuring wages and operating expenses, this sustained decline in workers’ compensation rates offers welcome relief. But the employers seeing the biggest benefit aren’t just relying on base rate reductions—they’re joining safety groups like Lovell Safety Management’s Safety Group #469, where they also receive up to 35% upfront discounts and cash dividends (most recently 30%) based on the safety group’s strong performance.

Why Rates Keep Dropping Despite Rising Costs Elsewhere

The continued decline in workers’ compensation rates may seem surprising, especially given rising wage inflation and operational expenses in other lines of coverage. However, New York’s workers’ compensation system has remained profitable for insurance carriers.  That profitability is tracked through the combined ratio—a measure comparing total losses and expenses to earned premiums. In recent years, New York’s accident-year combined ratios have consistently remained below 100%, meaning carriers are paying less in claims and operating expenses than they collect in premium. The result? A healthy underwriting profit—even before investment income is factored in.

Rates Down, Wages Up: How That Affects Employers

Since 2017, average loss costs in New York have dropped by over 67.5%, while the average weekly wage has climbed more than 40.4%. This divergence means that employers who have not experienced equivalent wage growth have likely seen a significant net reduction in workers’ comp premiums over the past decade.  But here’s the critical question: Are you capturing the full savings potential—or just settling as your workers’ compensation premium isn’t growing at a rate like other insurance lines?

Unlocking Greater Value with a Workers’ Compensation Safety Group

Employers who want to go beyond rate reductions are turning to workers’ compensation safety groups—fully insured, not-for-profit programs that share the profits with members through dividends.  In a safety group, employers with similar operations (and therefore similar risk exposures) join to pool their premiums. After claims and expenses are paid, any surplus is returned to members in the form of a dividend.  Safety groups also promote a culture of injury prevention, offering hands-on support to help reduce the frequency and severity of claims—driving costs down even further.

Safety Group #469: A Long-Term Solution for Construction Contractors

One of New York’s most successful examples is Safety Group #469, which serves construction contractors operating throughout New York State, the group has:

  • Returned over $650 million in dividends to members
  • Delivered a 30% dividend in the most recent year
  • Offered up to 35% in advance premium discounts
  • Provided coverage across state lines with a single bill and point of contact
  • Delivered ongoing safety, claims, and underwriting support

A Proven Model That Keeps Paying Off 

Across all 13 of Lovell Safety Management’s industry-specific safety groups, members have received over $1.28 billion in dividends to date. These programs offer fully insured, low-risk alternatives to traditional carriers—without giving up the opportunity to share in the profits.  As the workers’ compensation market continues to reward strong safety and smart risk management, safety group members remain in the best position to benefit—year after year.

Want to Find Out if You Qualify?
If you’re a contractor or employer in New York looking for long-term savings and stability in your workers’ comp program, now’s the time to explore your options.

Contact Lovell Safety Management at 1-800-556-8355 to learn more about how Safety Group #469 or another group could benefit your business.