The New York Construction Classification Premium Adjustment Program (CPAP) is a program implemented by the NYCIRB in 1993 in order to address premium differences between high wage and low wage paying employers in the construction industries.
At that time it was noted that although both high wage and low wage employers performed similar work, the high wage employers were paying a disproportionate premium solely due to the wages that they paid their employees. This disproportionate premium payment affected the ability of the high wage paying employers to obtain jobs when their workers compensation costs were higher than those of the lower wage paying employers, despite having similar risk to injury on jobs.
This program attempts to close the premium differential by granting credits on policies based on the hourly wage paid by employers. The higher the wage paid then the higher the credit, which would offset the disparity in payrolls and allow for a more equitable premium charge for those employers in the same industries.