If you’re a New York contractor, there’s good news on the workers’ compensation front. Beginning October 1, 2025, the New York Construction Classification Premium Adjustment Program (NYCPAP) has been completely redesigned to make it fairer, easier to use, and more rewarding for contractors who pay competitive wages.

The CPAP program has been around for years, but until now, participation was limited, and the credit amounts often didn’t reflect the real cost of doing business in the New York construction industry. The 2025 update changes that in a big way. Here’s what you need to know — and how BGES Group can help you make the most of it.

What is the NYCPAP Program?

The NYCPAP program was created to level the playing field for construction employers who pay higher-than-average wages. Workers’ compensation premiums are typically based on payroll, not the number of employees, which means that higher-paying contractors have historically paid higher premiums — even though the risk of claims doesn’t necessarily rise in direct proportion to wages.

CPAP fixes this by giving those employers a premium credit. In short, if you pay higher wages in certain eligible construction classifications, you get money back in the form of reduced premiums.

What’s Changing in 2025

For years, the credit system used a single statewide wage table that didn’t fully reflect the big differences between trades and class codes. That’s where the 2025 redesign comes in.

Here’s how the new system works:

Class-Code-Specific Wage Thresholds: Instead of one generic table, the new program uses wage data specific to each construction class code. This means a carpenter is compared to other carpenters, not to ironworkers or elevator mechanics.
Four Credit Levels: Each class code has four wage “tiers.” Your credit is 10%, 15%, 20%, or 25% depending on where your wages fall in that class code’s distribution. The higher you pay, the higher the credit.
Automatic Data Collection: In the past, employers had to apply separately to get the credit. Many missed out simply because they didn’t know about the program or didn’t submit the paperwork. Now, insurers will collect payroll and wage data during the final audit — meaning participation should skyrocket.
Estimated Credits Upfront: Carriers can now include an estimated CPAP credit when they issue your policy. Your final credit is adjusted at audit based on actual payroll and hours worked.
Clear Eligibility Rules: Policies must have at least $5,000 in manual premium in New York and must include one or more CPAP-eligible class codes. Large deductible programs, retrospective rating plans, and certain wrap-ups are excluded.

Real-World Wage Threshold Examples

To give you an idea of how this plays out, here are a few examples of wage breakpoints for popular class codes:

Carpentry (5403): Workers earning more than $67.72/hr qualify for the full 25% credit.
Landscape Gardening (0042): Wages over $80.68/hr earn the top credit tier.
Iron or Steel Erection – Frame Structures (5040): Pay over $98.06/hr gets the maximum credit.
Elevator Erection or Repair (5160): Wages above $81.18/hr qualify for the top tier.

If your average wages are below those thresholds, you may still qualify for a 10%, 15%, or 20% credit — which can still translate into thousands of dollars in premium savings.

What Contractors Should Do Now

The redesigned CPAP program is meant to make it easier for you to get the credits you deserve, but there are still a few things you can do to make sure you don’t leave money on the table:

Track Wages Carefully: Make sure your payroll system can report wages and hours accurately by class code. If employees work in multiple classifications, record hours separately so your insurer can assign them correctly.
Be Ready at Audit: When your carrier requests payroll and wage data at the end of the policy term, respond promptly. If you don’t provide the data, the insurer is not required to apply the credit.
Ask for an Estimate Upfront: When renewing or shopping for coverage, ask your broker or carrier to include an estimated CPAP credit in your proposal.

How BGES Group Helps Contractors

At BGES Group, we live and breathe workers’ compensation insurance for New York contractors. We know the ins and outs of the NYCPAP program and can make sure you’re getting the maximum credit possible.

Here’s what we do for you:

Review Your Class Codes: Many contractors are misclassified, which leads to higher premiums and missed credits. We check your policy for accuracy.
Estimate Your Credit Before You Buy: We run the numbers on your payroll and wage data so you can see your likely credit before binding coverage.
Shop Your Coverage: Need a new policy? We market your account to 15+ top carriers and find you the best combination of coverage, rates, and credits.
Assist at Audit: We work with you during final audit to make sure your wage and payroll data is reported correctly and your CPAP credit is applied.

Why Choose BGES Group

We’ve specialized in insuring New York contractors for over 40 years. Our focus is on solving problems quickly, keeping your coverage compliant, and lowering your costs whenever possible.

When you call BGES Group, you don’t get a call center — you get an expert who answers the phone and gets things done. Whether you need a new workers’ comp policy, help with a claim, or advice on controlling premiums, we are your partner every step of the way.

Get Started Today

Don’t miss out on the premium savings available through the redesigned CPAP program. Let BGES Group review your current policy and payroll so we can determine your eligibility and help you take advantage of every available credit.

📞 Call/Text Gary Wallach at 914-806-5853
📧 Email: bgesgroup&gmail.com

Website: www.bgesgroup.com

BGES Group is here to make sure you pay the lowest possible premium for the coverage you need — without sacrificing protection.