Many construction firms, especially those that work in Union active areas, or high wage states have a discounting tool available to them as it relates to their New York Workers Compensation Premium. Sadly this credit is often overlooked. It's called the "Contractor's Premium Adjustment Credit". Construction firms paying Union scale wages will almost always qualify for the credit, which is available in 20 states listed below. The size of the credit varies however in most states the credit range is between 5 & 40 percent with discounts of approximately 20 percent being the average. In many states a formula is used to determine the credit. The formula is based upon average weekly wages to determine the size of the credit.
The contractors Premium Credit can be obtained by completing a simple application. Contact the Agency or Brokerage Firm who has placed your workers compensation policy. If they don't know what your talking about, stop looking for the credit and find another Risk Advisor or Insurance Broker, preferably a risk advisor. You can also contact us directly at Metropolitan Risk Advisory for the application based upon the state you are applying for the credit.
Since this credit is applied on a per state basis, you need not be domiciled in that State to be eligible for the credit. The criteria is that you must have had eligible payroll incurred in the State that offers the credit, and the payroll must exceed the State Average payroll for that classification.
In this environment every bit helps. A good risk advisor will make this an audit procedure every year to check and make sure that you are getting all the credits you deserve, while you focus on your business. Set up the procedure so it becomes automatic. If you have to think about it, it's not getting done!
States Allowing the Credit:
- New York
- New Jersey
- New Mexico