New York Passes California as the Highest Insurance Rate State

There is a new sheriff in town! California has historically, and for some time, been the most volatile State for workers’ compensation. However, as of a recent study in 2018, New York has become the highest State for workers’ compensation rates, with California coming in 2nd.

Below is a nationwide insurance rate ranking for workers’ compensation volatility by State.


Insurance Rate Ranking by State

Workers’ Compensation Premium Rate Ranking by State. 2018


Implications for PEOs

A PEO, especially one that writes blue and grey collar business, should evaluate the workers’ compensation volatility for each State it will conduct business. A PEO is advised to review, at a minimum, the following items simultaneously if it is contemplating entering a new State:

  1. Market Opportunity
  2. Competitive Landscape
  3. Client Segmentation Availability
  4. Insurance Volatility
  5. Pricing Elasticity
  6. Geographic Requisites
  7. Prospective Growth Rate

The information in this brief article will shed some light on one of the above factors; workers’ compensation insurance volatility per State.



Rob Comeau is the CEO of Business Resource Center, Inc., a business consulting and M&A advisory firm with a niche focus on the PEO industry. You may reach Rob at or visit BRC on the web at