CPAP Overhaul Effective October 2025
| LOVELL SAFETY MANAGEMENT CO. LLC |
| We want to make you aware of the upcoming changes to the Construction Classification Premium Adjustment Program (CPAP) that will apply to policies with an effective date of October 1, 2025, and later. The New York Compensation Insurance Rating Board (NYCIRB) initiated these changes to increase participation in the program, shift the application burden to carriers, and to better compensate for wage discrepancies within different class codes. What’s Changing: * No more CPAP application – carriers must gather wage and hour information during the audit and submit it to NYCIRB. *Credits will be based upon annual payroll data, not a single quarter *Estimated CPAP credits will be calculated at the time of quotation. *Credits are now based on class code-specific wage thresholds, not a single wage table. Final credits will be determined by NYCIRB and applied to policies after the annual premium audit. To develop the required estimated credit, clients will need to: *Complete a prescribed payroll spreadsheet provided through us, or *Use NYSIF’s online CPAP Estimator. We will be sending notices along with our prescribed payroll spreadsheet to our mutual clients who qualify for CPAP approximately 60 days prior to renewal. Please know, Lovell will be available to assist and guide them through the process and ensure they’re positioned to receive any credit they’re eligible for. There is no action required on your part for now, but we’ll continue to provide updates as more implementation details are finalized. Please feel free to reach out to your sales representative if you’d like to discuss how these changes may impact specific accounts. |
Steven Bell
Vice President Underwriting & Sales
Lovell Safety Management Co., LLC