Insureds with two or more workers compensation and employers liability insurance policies may be combined for the application of a retrospective rating plan, providing there is common majority ownership as defined in the New York Experience Rating Plan Manual.
When a retrospective rating plan includes workers compensation and employers liability insurance and other commercial casualty insurance, the total retrospective rating premium, including the minimum and maximum retrospective premium, is determined on the basis of premium for all lines of insurance in a retrospective rating plan.
Retrospective rating may be applied to any of the following types of insurance alone or any combination of such insurance:
- Workers compensation and employers liability insurance
- Any other commercial casualty line(s) of insurance
For illustrations and examples of combinations, refer to the Retrospective Rating Plan Manual issued by the Insurance Services Office.
An insured is eligible for a one-year plan if the estimated standard premium is at least $25,000.
An insured is eligible for a three-year plan if the estimated standard premium for three years is at least $75,000.
The New York Large Risk Rating Option provides the carrier and insured the option of negotiating the retrospective rating factors used to calculate premium. An insured is eligible for the LRRO if the estimated standard premium individually or in any combination with any other commercial casualty lines of insurance (general liability, commercial automobile, hospital professional liability, crime, glass) exceeds an annual standard premium eligibility threshold of $500,000 for the term of a retrospective rating plan.
Two or more policies on a wrap-up construction project may be combined for the purpose of retrospective rating in accordance with the rules of the New York Workers Compensation and Employers Liability Manual. Wrap-up construction projects may be written on a single or multi-state basis.
Steps to be followed in order to determine whether a wrap-up construction project may be eligible to be retrospectively rated:
- Determine the sum of all wrap-up construction project standard premium for all states
- Of the states' standard premiums included in (1), determine which state's wrap-up construction project retrospective rating premium eligibility threshold is greatest. Refer to NCCI's Retrospective Rating Plan Manual for premium eligibility in states other than New York.
- An insured may be retrospectively rated if the sum of the states included in (1) meet the wrap-up construction project retrospective rating premium eligibility threshold for the state determined in (2)