8.1% Decrease for Nevada Workers Compensation Rates 2019

Nevada Workers Compensation Rates 2019 are Some of the Lowest in the Country

Effective March 1, Nevada Workers Compensation Rates in 2019 will be declining by 8.1%. According to the Oregon Premium Rate Ranking Study Nevada was the 46th most expensive state in the country to buy Workers’ Comp Insurance. The cost for coverage in Nevada is 71% of the national median. Each individual class code will see varying amounts of savings depending upon class code and experience modification rating. The range of changes in premium are between -29% and +15%. A sizable majority of classifications would receive decreases, often substantial decreases, as a result of this filing. A few still will see an increase in what they pay.

Las Vegas, Nevada

How is the Nevada Workers Compensation System Unique?

In the state of Nevada all businesses, must be covered by workers’ compensation insurance. Nevada operates under what is referred to as a no-fault system. A no fault system protects employees by providing medical and disability benefits along with some lost wages. The system also protects employers by limiting liability in the event of a workplace injury.

In the past Nevada was a monopolistic state. Being a monopolistic state means the employer must obtain workers compensation insurance from a compulsory state fund or qualify as a self-insurer. This means all businesses that operate within the state must purchase coverage from one provider. There is no open market for coverage. To be self insured, the business must meet certain financial criteria to qualify.

Currently, Nevada is an NCCI state. This means the state pool for high risk businesses that have been denied coverage on the open market is administered by the National Council on Compensation Insurance (NCCI). Typically states who partner with NCCI enjoy more favorable rates on workers comp coverage.

Sandstone, Nevada Desert

Why are Nevada Workers Compensation Rates Declining?

Nevada Workers Compensation Rates are declining significantly in 2019. This is because of a number of reasons. The payroll cap is one factor, most other states do not implement that somewhat contribute to lower rates on premium in Nevada. What a payroll cap means is that most states require the full payroll of all covered employees to be factored in the insurance premium. The rate is multiplied by each $100 in payroll. After this additional debits or credits are applied. Nevada only requires the first $36,000 of payroll for each covered employee, which reduces insurance premiums for businesses with employees who have higher salaries.

Also contributing to lower workers comp rates, is declining claims frequency. This is a trend that is happening throughout the country. Most people credit improvements in automation and workplace safety for the decline in claims frequency.

Tahoe Ski Resort, Reno, NevadaPurchasing Nevada Workers Compensation Insurance is very complex. It requires the help of a trusted advisor. More often then not the most trusted advisor is an independent insurance agent. In order to make sure your business is purchasing the right policy is to seek help from a Independent Insurance Agent.  An independent agent can help you get quotes from multiple insurance companies so you can be sure you get the most comprehensive coverage at rock bottom rates.

Alaska Workers Compensation Rates in 2019 are going down!

The Largest Decrease for Workers Comp Insurance Premium in 40 years for Alaska Business Owners

In 2019, Alaska Workers Compensation Insurance Rates are expected to fall the most they have in 40 years. The governor office announced this past October that workers’ compensation insurance premiums should decrease by an average of 17.5 percent statewide starting the first of January.  This decrease follows a 5.4 percent decrease in 2017 and workers’ compensation premiums are down roughly 25 percent since 2015. These reductions amount to an estimated $35 million in savings for the Alaska Business Community. According to Alaska Governor Bill Walker, “These proposed rate reductions are welcome news for Alaska businesses — lower workers’ compensation costs reduce the burden on the small businesses that strengthen our economy,” Walker said in a formal statement. “Thank you to the Alaska state Legislature and the Department of Labor and Workforce Development for their work on payment reform, contributing to significant rate reductions for 2019.”

Mount McKinley, Denali National Park, Alaska

What Caused Alaska Workers Compensation Insurance Rates to Decline?

There were a number of factors that contributed to the large decline in Alaska Workers Compensation Insurance Rates. Claim frequency and favorable medical costs continued to decline in 2018 which were two of the major factors contributing to declining rates. The claims frequency means that across the board there were less claims filed in 2018 compared to previous years. This is a favorable measurement for insurance carriers because this decreases the costs related to paying out insurance claims and processing those claims. Declining medical costs is largely because of streamlined processes throughout the medical facilities operating within the workers compensation system.

There was also legislation passed in 2018 that will contribute to lower rates in 2019 and for the foreseeable future. The legislation was House Bill 79 (HB79). the legislation clarified who is classified as an independent contractor and who needs to be covered by workers’ compensation insurance. This bill made it easier to obtain exemptions, to acquire reporting data, and to make payments.

Alaskan Cruise Ship

What can Business Owners do to Maximize Alaska Workers Compensation Insurance Rates?

There are many ways a business owner can save, in addition to the savings the Alaska Business Community is receiving from workers compensation premiums declining. Here are 5 things a business owner can act upon to maximize savings on Alaska Workers Compensation Insurance.

  • Make sure your Business is Classified Properly
  • Implement a Safety Program
  • Incorporate a Return-to-Work Program in the Safety Program
  • Consider Pay-as-You-Go Workers Compensation
  • Partner with an Independent Insurance Agent

Proper Classification Codes

In any given year, there are more than 700 different classification codes for businesses and employees to use when it comes to workers compensation insurance. Making sure your business is classified correct is a step that can save a lot of headaches during a mid term or end of term audit. Proper classification can prevent your business from over or under paying premium throughout the year. If you under pay throughout the year, it can cause your business to owe additional premium at the end of the term. Even if your business over pays through out the year and gets a credit on their policy, it means your business has had unnecessary cash flow tied up in workers comp premium payments. This is money that could be used on other necessary business needs.

Well-Documented Safety Program

A safety program can help a small business lower what they pay for commercial insurance by decreasing the frequency and severity of workers compensation insurance claims. The safety program does not have to be exhaustive. It can be as small as part of the new staff training program and a few 15 minute huddles each week. It is important to have these meetings documented. Your insurance agent can use this documentation to get you an additional discount when purchasing coverage. The documentation can also be used when a business experiences a year in which there are several claims or one large claim. Usually when this occurs your can expect your insurance premium to rise. If you have a documented safety program, your independent insurance agent can use it to show the claims are more of an outlier and not a sign of more claims to come.

A Return-to-Work Program

A return to work program is a great way to show your employees you care about them and help them get back to their daily routine quicker. When executed properly, a return to work program can help get your injured workers back on the job, even in a limited capacity, and back a part of their regular work routine. This is the best way to keep insurance claims under control and help keep your experience modification rating low.

Pay-as-You-Go Option

Some businesses may benefit from Pay as You Go Workers Compensation. Most traditional workers comp policies require 25 to 33 percent of the entire premium up front just to get coverage in place. With the Pay as You Go Option, most businesses can get coverage in place for as little as a few hundred dollars. This allows cash strapped businesses to get coverage in place, but use their needed cash flow for other more urgent business needs.

Partner with an Independent Agent

An independent agent is always the best way to find the most comprehensive insurance coverage at the lowest rate possible. Especially if the independent agent has several years of experience and relationships with multiple insurance carriers. They can use this knowledge and these relationships, to know which carriers are actively looking to quote your industry and and force carriers to compete for your business.

Oregon Workers Comp Rates are Declining in 2019

A 9.7 % Decrease Marks 6 Consecutive Years of Declining Oregon Workers Compensation Rates

Workers Compensation Rates for the business community within the state of Oregon are declining by an average of 9.7 percent in 2019. The rates went in to effect the first of January and they mark the 6th consecutive year that workers comp rates have declined for Oregon Business Owners. Over this six year period Oregon Workers Compensation Rates have declined by 40 percent from 2013 to 2019. The average pure premium rate will be $1.12 per $100 of payroll for workers compensation coverage. In 2018 this rate was $1.28 per $100 in payroll. Comparatively, the cheapest state for coverage is in Texas at $0.75 and the most expensive state in Alaska at $2.74. As of 2018, the last year rankings were made, the state of Oregon was the 45th least expensive state to purchase coverage.   Utah, West Virginia, Arkansas, Indiana, and North Dakota are the only states that have cheaper rates than the state of Oregon.

Portland, Oregon

Why are Oregon Workers Compensation Rates declining in 2019

There are several contributing factors to declining workers comp rates for Oregon Businesses. Lower medical care costs and less severe claims in recent years are two of the strongest contributing factors. Cameron Smith, Department of Consumer and Business Services (DCBS) Director, “Everyone from employers and workers to insurers and government has played a role in making workplaces safer and keeping business costs low.  As the numbers show, Oregon’s comprehensive approach continues to pay off.”

There are additional measures that are contributing to positive rates in recent years. The Workers Compensation Division for the state of Oregon have increased several efforts that include enforcing employers to carry insurance, keeping medical costs under control, and helping injured workers return to work sooner. Additionally, in Oregon the state government has recently put a focus on preventing on-the-job injuries by enforcing workplace safety and health rules, as well as advising employers about how to improve worker safety and health. Governor Kate Brown stated, “Oregon continues to demonstrate that it’s possible to maintain low employer costs while providing strong support to workers. We must remain committed to working together to balance employer rates and worker benefits, and to help injured workers heal and return to work quickly.”

Oregon Business Owners enjoy a strong workers compensation system that provides the state with favorable rates on premium, but business leaders should still look to maximize savings. Partnering with an independent insurance agent is always the best way to get comprehensive coverage at rock-bottom rates.

Louisiana Workers Compensation Insurance Rates are Declining in 2019

Louisiana Workers Compensation Rates have declined over the past decade and the declines are continuing in 2019 

Louisiana Workers Compensation Insurance Rates are declining in 2019 by an average of 5.6 percent. According to Insurance Commissioner Jim Donelon, “Rates have had a cumulative drop of 19 percent over the last five years and 51 percent over the last 20 years.” This has had a dramatically positive impact on the business community throughout the state of Nevada over a time when the state has needed all the help it can get.

Oak Alley Plantation in rural Louisiana

What is Contributing to Declining Louisiana Workers Compensation

Louisiana Workers Compensation Rates 2019 are declining again. There are a number of reasons for the declining rates. At the top of the list of reasons for declining rates is competition in the market place, improved workplace safety, and better risk management practices being used throughout the business community. According the the Bureau of Labor and Statistics, Louisiana has one of the lowest non-fatal work-related injury rates in the United States. Speaking about the reasons for the decline in premium Donelon said “Louisiana businesses are benefiting from the competition in the workers’ compensation market. Through improved workplace safety and better risk management practices, rates have continued their downward trajectory and are more affordable for businesses statewide”.

French Quarter, New Orleans, Louisiana

Additional Savings Tips for Louisiana Businesses

When it comes to maximizing savings on Louisiana Workers Compensation Rates, there are a number of factors that contribute to what a business pays for workers comp premium. Being mindful of your operations and taking some time to make safety a priority can have a lasting effect when it comes to your business and the relationship with an insurance carrier. Here are three tips for saving the next time you purchase commercial insurance.

Focus on Safety

Safety, first and foremost, is the most important thing any business can emphasize in their operations. This is because focusing on safety is the right thing to do on a human level as well as on a business level. Your business cannot operate without employees. Keeping employees healthy and happy should be priority number one for any business owner. Not only are healthy employees happy, but they are more productive and commit less accidents. Less accidents means less damage to the businesses equipment and less missed time due to injured workers. This can have a long-lasting impact on what your business pays for commercial insurance and it does not have to take an exhaustive amount of time.

Create an Ergonomic Friendly Workspace  

Some of the biggest workers compensation claims stem from repetitive motion injuries. Problems like carpal tunnel can be very debilitating for your employees. When an employee suffers from a repetitive motion injury it can take an enormous amount of time to recover. Luckily man of these injuries are preventable. Working with your employees to create an ergonomically friendly work space can help prevent much bigger problems down the road. Creating an ergonomically friendly workplace is not easy and there is not a cookie cutter formula for how to make it happen. What will benefit one employee will not be ideal for another employee. Having open doors for communication and talking about ergonomics, safety, and comfort can help you start this conversation with your staff.

Understand your Experience Mod

The full term for experience mod is the experience modification rating. This rating is what a carrier uses to determine if they are going to offer a business insurance and what to charge each business for coverage. By speaking with your insurance agent about this rating, a business owner can get an idea of what they have the ability to control that will have a positive impact on this rating.  The main thing a business can do to keep this rating low is to limit the frequency and severity of insurance claims processed by your business. This does not mean you should keep everything secret from your insurance agent, but it does mean you should do everything possible to limit claims from happening. Operating a safe organization and limiting the frequency and severity of claims is the best way to keep this rating low.

Kentucky Workers Compensation Rates are Declining by 10.8 % in 2019

The Business Community in Kentucky Will be benefiting from improved Workers Compensation Rates 2019

In Kentucky, the business community will pay significantly less for Workers Compensation Premium next year. The rates will actually be 10.8 percent less in 2019. The decline in premium will apply predominantly to the industries of manufacturing, office, clerical, and contracting. These means some industries will see less of a decrease and some industries or individual businesses may see no decline at all.  No matter what industry a business operates in, the business community overall will benefit from better Kentucky Workers Compensation Rates 2019.

Kentucky Bluegrass on a Horse Farm.

Why are Kentucky Workers Compensation Rates Declining in 2019

There are a number of reasons why Kentucky Workers Compensation Rates in 2019 will be declining by more than 10 percent.  Some reasons contributing to the decline in premium throughout Kentucky is stability in written premium, lower combined ratios throughout the state, and lower loss-time claim frequency. Additionally, the strongest factor contributing to declining workers comp premium rates is House Bill 2.  According to the Department of Insurance Commissioner Nancy Atkin, “much of the decrease in costs to the passage of House Bill 2, which made significant reforms to the workers’ compensation system for the first time in over twenty years”. Many of the statutes in the previous workers compensation system were ruled unconstitutional by the state supreme court. These rulings brought about instability throughout the workers compensation market in the state. House Bill 2 stabilized that market.

Bourbon Barrels holding Kentucky Straight Bourbon Whiskey

Kentucky Workers Compensation System Over Haul

House Bill 2 passed in 2018.  This was the first attempt to make significant changes to the workers compensation system in the state of Kentucky in more than 20 years. Jeffrey Junkas, assistant vice president, state government relations for PCI said, “House Bill 2 is designed to help contain underlying costs and improve the state’s workers compensation system.  HB 2 makes changes impacting medical expenses and benefits. It also takes steps to address the opioid crisis with an evidence-based pharmaceutical formulary and medical treatment guidelines to ensure timely delivery of appropriate medical care to injured workers.”

In addition, the bill increases the maximum compensation rates for employee temporary total disability, permanent total disability, and permanent partial disability benefits. It improves access to vocational rehabilitation services, and makes improvements in the dispute resolution system. These changes will improve efficiency of the system and provide better services to both businesses and injured workers.

One big difference to the system that was brought on during the overhaul in 2018 was a 15-year benefit cap from the date of injury.  This cap would apply only to workers who meet certain conditions and are filing claims for permanent, partial disability because of on-the-job injuries. Many of these workers eventually return to the labor force and do not collect the full 15 years worth of benefits. Currently, they are entitled to medical benefits for the duration of the disability. This could be for the rest of their life in some situations. House Bill 2 does allow injured workers who meet these conditions to file for recertification. If they are approved the new system would allow them to continue receiving medical benefits.

Kentucky Fried Chicken

What Can Kentucky Business Owners do to Maximize Savings?

Depending upon the class code and the experience modification rating of an individual business the rating may be larger or smaller than the average decrease. There are a number of things a business can do to control what they pay for workers compensation insurance premium.

Safety Programs

Safety Programs are the single most effective way to limit what a business pays for commercial insurance. Separate from what it does for the businesses bottom-line, it is simply the right thing to do. Taking care of the health and well-being of your employees and customers should be at the heart of any businesses mission. Taking care of your staff will allow them to be more productive while also lowering the frequency and severity of insurance claims made by the business.

Light Duty Work

The best way to get employees back on the job and back to full-time work is to have light duty work prepared for those employees. Humans are creatures of habit and our work day routine is a big part of our most employees routine. The longer an injured worker stays off the job, the longer they have to create new habits away from the job. Having a plan for many types of light duty work in order to get injured workers back on the job and back in to their workday routine.

Classify Properly

In order to maximize savings when it comes to all forms of commercial insurance, it is important to first make sure all employees are classified properly. Many businesses have employees who partake in drastically different areas of the business. Some of those businesses have employees who work in office or clerical work, other employees who are salesman who spend a lot of time out at third party locations, and still other employees who work doing physical labor. All of these employees need to be placed in the proper classification code and their payroll needs to be strictly measured.

Shop Around Your Policy

In order to maximize savings, it is important to shop around your policy periodically. It is not a good idea to switch carriers each year based upon a small decline in premium. Long term relationships still do mean something when you have to file a claim.  At the same time, it is important to make sure your carrier is competitive with the market.

Use an Independent Agent

Shopping around your insurance policy can be a time consuming endeavor. If your time is valuable, partnering with an independent insurance agent can be a way to get multiple quotes from multiple carriers all in one place. Partnering with an independent agent can allow you to get back to running your business while the insurance agent shops your policy so you don’t have to.  This can maximize savings while getting your business more comprehensive coverage.

Connecticut Workers Compensation Rates are Going Down in 2019

17% Decrease for Workers Comp Rates in Connecticut

Connecticut Workers Compensation Rates will be declining in 2019 by an average rate of 17 percent. Marking the fifth straight year rates have declined throughout the state of Connecticut. Over the past five years rates have declined by an average of 3, 4, 11, and 14 percent. Altogether, these decreases amount to the Connecticut Business Community paying 50 percent less than five years ago. According to Katharine L. Wade, the Connecticut Insurance Commissioner, “This steady drop – nearly 50 percent over the last five years – has helped business owners with one of their critical operating costs – workers’ compensation insurance.”

Rustic Barn in the Scenic Connecticut Countryside

What Contributed to Declining Connecticut Workers Comp Rates

A number of factors have contributed to the significant decline in Workers Comp Rates. In relation to the reasons for the decline Wade said, “The rates reflect an ongoing decrease in the number of workplace injuries and claims filed. We are also seeing, on average, lower medical costs per claim.” The decrease in workplace injuries is predominantly related to business owners throughout the state of Connecticut paying more attention to workplace safety. The state is also seeing lower medical costs per claim.

Additionally, a consistent decline in claim frequency since 2010 and per case indemnity costs continue a slow but consistent decline, from $31,611 in 2013 to $29,193 in 2016. An indemnity claim protects an employee against damages. The Workers Comp Policy offers medical coverage, lost-wage replacement, permanent disability benefits, vocational rehabilitation, and even death benefits for family members. Within the insurance industry, professionals categorize claims into two classes: indemnity and medical-only. An indemnity claim occurs when an employee becomes injured on the job and cannot return to work until the injury heals or the injury becomes permanent. A medical-only claim applies when the employee immediately returns to work after the injury.

USB Building in Stamford, Connecticut

What is Unique about the Workers Compensation System in Connecticut?

Connecticut was one of the first states to enact Workers Compensation Legislation in 1913 with the Workers’ Compensation Act (also known as Chapter 568 of the Connecticut General Statutes). The primary purpose of the Act has always been to provide wage replacement and medical treatment for employees who have been injured, disabled, or killed while on the job. While the state of Connecticut was an early adopter of the workers compensation system, this was a time period when many states began to adopt some form of workers compensation system throughout the first few decades of the twentieth century. With the onset of the industrial revolution, states realized that there was a need for a strong workforce. One way states went about guaranteeing there would always be a strong and healthy workforce in their state was to develop some form of a workers compensation system. Just five years ago in 2013, the state of Connecticut celebrated 100 years of such a system. 

The basic structure of the original law still survives despite four major revisions and numerous smaller modifications. Connecticut is a No Fault State meaning the workers compensaiton system provides benefits to employees no matter who was at fault for the injury or illness.  Within the state of Connecticut injured employees are provided medical treatment, wage replacement, vocational rehabilitation, jon retraining, dependents death benefits, and relapse benefits.

Picture of the state map of Connecticut with the word Connecticut written in cursive.

What can Business do to Maximize Declines in Connecticut Workers Compensation Rates?

Implement a Safety Program

A Safety Program is the single most effective way to limit the frequency and severity of insurance claims within a business. Limiting claims can have a long term positive impact to your business when it comes to purchasing commercial insurance. This is because it will have a positive impact on the businesses experience modification rating, which is one of the most impactful measurements underwriters use when they decide if they are going to offer your business coverage and how much to charge for that coverage.

Include a Return to Work Program

Incorporating a return to work program into your safety program is a great way to positively impact your experience modification rating for years to come. This is because the quicker an injured employee returns to work, the more likely they are to return to permanent work. This is how a business can limit the damage to the business when it does experience an injured worker.

Shop Around Your Policy

Shopping around your policy is something you should do periodically. If not every year, at least every few years in order to make sure your current insurance carrier is competitive with the current market. It is not a wise decision to switch each year based upon a modest decrease in premium, but it is wise to keep your rate competitive.

Partner with an Independent Agent

One of the best ways to shop around your insurance policies is to partner with an independent insurance agent. An independent agent can shop around your policy for you and they have the inside knowledge to know which carriers are hungry to quote your industry or the coverages you are looking for. This can save you time and money when purchasing commercial insurance.

 

17.2% Decrease for North Carolina Workers Compensation Rates 2019

North Carolina Workers Compensation Rates will be declining in 2019

In 2019, businesses in the state of North Carolina will pay on average 17.2 percent less for workers compensation.  This decrease is in addition to a 8.5% decrease in 2016 and a 12.5% decrease in 2017. This is great news for North Carolina. A state that was previously ranked 23 out of 50 when it comes to workers comp premium. This decrease should lower the states ranking and considering North Carolina is the 10th most populous state, this is great news for the business community.

North Carolina Flag within the outline of the state border.

Why are North Carolina Workers Compensation Rates Declining in 2019

North Carolina Workers Compensation Rates 2019 are decreasing primarily as a result of insurance carriers processing fewer claims and paying out less for workers’ compensation claims. Because of these declines in claims and payouts,  the carriers are able to pass on the savings to customers. Now not all industries are going to see the same amount of decrease. Some industries may fair better than others. According to the North Carolina Rating Bureau (NCRB), manufacturing industry groups will experience an average drop of 15.8 percent, contracting industry groups will see a decrease of 6.5 percent, and both office and clerical as well as goods and services will see an average of 19.3 percent decrease to both industries.

Charlotte, North Carolina Skyline

How can Businesses Ensure Maximum Savings on North Carolina Workers Compensation Rates 2019

Partner with an Independent Agent

Partnering with an Independent Agent is one of the best ways a business can make sure to get maximum coverage at rock-bottom rates. This is a fact because an independent agent is not pressured to sell you the coverage of one insurance carrier. An independent agent can shop your policy out to multiple carriers. Multiple carriers competing for your business can get your business better coverage at better rates. Additionally, the independent agent knows which carriers are hungry to quote the policies you are looking for, in the particular state you are located, and in the industry your business operates. This inside knowledge can save you time and money when looking for coverage.

Control Your Experience Modification Rating

The experience modification rating of a business is crucial to limiting what the business pays for premium. The first thing an underwriter looks at when determining if they are going to offer coverage to a business and what to charge that business for coverage, is the classification code of the business and the experience modification rating of that business. Controlling this rating is one of the more impactful aspect a business has control over. Especially related to what the business pays for commercial insurance, especially workers compensation.

Prepare for Natural Disasters

In North Carolina, Natural Disasters are a risk to consider. This is the case no matter what part of the state you are located. Hurricanes and flooding are especially important to speak with your insurance agent about. The amount of risk you are comfortable with may not be the same as other business owners. If this is the case, it is important to express this to your agent. Tell them what you do, what the climate is like, and the level of risk you’re comfortable. With this knowledge, a good independent agent should be able to find several packages to suit your needs.

Develop an In-depth Safety Program

Safety Programs are one of the most cost effective ways for a business to save money. Not only can an effective safety program help a business save on commercial insurance, it can also help save money in many other ways. Lowering damage to equipment, less missed days by injured employees, and a happier workforce are at the top of the list of ways a business can benefit from an effective safety program.

Include a Return-to-Work Program

A Return-to-Work Program is something that can be implemented in tandem with a safety program and save your business immensely when you do experience an injured worker. Statistics show, the quicker an employee gets back to work, the more likely they are to return to work. This will save your business considerably by not damaging your experience modification rating, by not having to deal with a missing or injured employee, and by not having to retrain a new employee to do what the injured employee had experience with.

North Carolina Mountain Landscape

The North Carolina Business Community will be seeing improvements next year in the form of lower workers compensation rates. This good news resulted from insurance carriers processing fewer claims and paying out less for the claims that were processed. These improvements are attributed to technology improving the efficiency in improvements and the safety of the workforce. In light of these savings, business owners should consult with their insurance agent to make sure they are maximizing all possible savings when it comes to workers compensation as well as all other forms of commercial insurance. Partnering with an independent agent is the most efficient way to ensure comprehensive coverage at the lowest rate possible.

Ocean Sunset along the North Carolina Coast

Florida Workers Comp Rates Remain in Flux for 2019

Florida Workers Comp Rates 2019 are headed in a positive direction.  

In 2019, Florida Workers Comp Rates are improving for the business community throughout the state.  The decline amounts to a deduction of 13.9% and will contribute to a savings for business in Florida of approximately $454 million. This is good news because the Florida Workers Compensation System has been in flux for a number of years.  This decrease is the third such decrease over the previous year and a half.  Previous to these three decreases, the workers compensation rates had increased by 14.5% in 2016.

Florida Workers Comp Insurance Rates 2019

What Caused Florida Workers Compensation Rates 2019 to Decrease?   

Florida Workers Comp Rates 2019 are decreasing because of significant improvements in experienced losses by insurance carriers. This means the insurance carriers paid out less in claims. Some within the industry credit safer workplaces, enhanced efficiencies in the workplace, and an increase in the use of technologies for the decrease in costs.

Pond with a waterfall and palm trees in the background at a Miami, Florida Golf Course.

Why have the Workers Comp Florida Rates 2019 Been in Flux?

For the past few years, workers compensation rates within the state of Florida have been in flux for a number of reasons. Two State Supreme Court Decisions have contributed to the instability. Those cases were Castellanos v. Next Door Company and Westphal v. City of St. PetersburgCastellanos vs. Next Door Company made a previous 2009 ruling invalid, meaning judges no longer had to stick to the mandatory fee schedule and now can award additional compensation for attorney’s fees when offering judgments within the workers compensation system.  The Westphal Case, had a ruling that ruled the 104-week statutory limitation on temporary total disability benefits is unconstitutional. This ruling extended this period to a 260-week limitation. This 260-week limit is more in line with states throughout the country and significantly increased the amount carriers had to pay for permanently disabled injured workers.

Another factor that has caused the workers compensation system in the state of Florida to be out of whack is State Senate Bill 1402.  This bill accounted for 1.8% of the recent increase in premium by increasing the cost for updates within the Florida Workers’ Compensation HCPR Manual.

In addition to these issues, in 2017 the Florida Insurance Regulators took over Guarantee Insurance Company (The states assigned risk workers comp provider) because it had become insolvent.  This left 1250 businesses in the state of Florida scrambling to find a workers comp carrier.

Epcot Center, Disney World, Orlando, Florida

What could be in store for future rates?

Hurricane Michael Relief

In response to Hurricane Michael, Florida Governor Rick Scott issued an emergency order that make sure “additional protections” are in place for Florida policyholders – including freezing any rate hikes for 90 days.

The order requires that insurers:

  1. Provide an additional 90 days to policyholders to supply required information to their insurance company. Many Floridians were displaced during this dangerous storm, and providing additional time to submit information to insurance companies gives them needed flexibility.
  2. Rescind for 90 days all non-renewals or cancellations issued to policyholders in the days leading up to Hurricane Michael. This gives policyholders 90 days to either renew their insurance policy, or find a new policy; and
  3. Freeze any and all efforts to increase rates on policyholders for 90 days.

Independent Medical Review Program

Florida is looking in to implementing a 6-year-old independent medical review program for workers compensation claims. This program has been enacted by the state of California and has been a resounding success. Under this program disputes about the medical treatment of injured workers are resolved by physicians instead of by the courts. California has found this has enabled for a more efficient resolution of claims while reducing the need for lengthy and costly judicial processes.

New State Senate Promising to Revisit Florida’s Workers Comp Laws

The new President of the Senate in the state of Florida, Bill Galvano, is promising to revisit Florida’s workers’ compensation insurance laws. At a recent ceremony shortly after taking over as President of the Senate Galvano said, “I don’t want to be in a situation where they spike and then we are running to fix it at that point”. Statements like these from the leadership of the Florida legislature show the decision makers in the house are looking forward to attempt to provide a stable market for the business community and eliminate the volatility businesses have seen in recent years for Florida Workers Comp Rates.

Turtles and Alligator at Busch Gardens, Florida

What can Florida Business Owner do to Maximize Savings?

Shop around your Policy

It is not a wise decision to switch carriers every year for a slight decrease in premium. This is because when a claim does occur a carrier will take in to consideration how long you have been a customers of theirs when they are deciding to raise your rate or deny your business coverage. At the same time, it is important to make sure your business is getting a competitive rate. The best way to do this is to partner with an independent agent who can shop around your policy for you.  This can save you time and usually result in lower premium payments on more comprehensive coverage.

Invest in Safety Protocols

Safety is the name of the game in any business. It is what is best for your employees as well as your customers. It is also important when it comes time to purchase commercial insurance. a safer business will have less claims and the claims it does have will be less severe. A small investment in a safety program can pay huge dividends when looking for the lowest Florida Workers Comp Rates.

Choose the Pay as You Go Option

Pay as You Go Workers Compensation Insurance is an excellent option for seasonal and cash strapped businesses. This option allows businesses to get coverage in place at a significantly lower rate than a traditional workers comp policy. Once a policy is in place, the premium is paid monthly based upon the actual payroll from the previous month.  This is a great option if your business operates in an industry that has a hard time forecasting payroll for a number of reasons. If your payroll is significantly lower one month the payment will reflect that and the same will occur in months when your workforce represents more man hours. Finally, a Pay as You Go Policy prevents most mid-term audits from occurring because the payments are more accurate from month to month and not based upon an estimate from previous years payroll.  This prevents an unwelcome surprise from occurring at the end of a term when a business under pays premium throughout the year and has an unexpected payment to end the year.

 

Indiana Workers Compensation 2019

Indiana Workers Compensation Rates are going down by an average of more than 7%. 

Indiana Workers Compensation Rates 2019 will be going down by an amount of 7.6 percent on average for businesses throughout the state. The Department of Insurance approved the decrease in the month of October and the benefits go in to effect the first of January 2019. This savings is estimated to amount to a savings of more than $60 million for Indiana Businesses.

Indiana Workers Compensation

Why are Indiana Workers Compensation Rates 2019 Declining

Many things go in to what a business pays for workers compensation insurance. The experience modification rate of the business and the strength of the assigned risk provider in the particular state equate an enormous amount towards what a carrier decides to charge a business for coverage.  Indiana Workers Compensation are decreasing because of lowering frequency of worker injuries. The department of insurance also credited a robust job market as a reason for lower rates because as the economy grows people open more businesses which create a larger base for insurers to collect premiums.

Indiana Farm In Winter

How can Business Owners Maximize saving on Indiana Workers Compensation Rates 2019?

Shop Around Your Indiana Workers Compensation Policy

It is never a good idea to switch carriers at the drop of a hat because of a small drop in premium. At the same time it is equally important to shop your policy around periodically to ensure your carrier is offering a competitive price. An efficient way to do this is to partner with an independent agent.

Use an Independent Agent

Partnering with an independent agent is always a great way to ensure maximum savings on the most comprehensive coverage available. An independent agent is a good partner because they can shop your policy around to multiple carriers in an attempt to get better coverage at lower rates by forcing the carriers to compete for your coverage. An independent agent will allow you to focus on running your business while your agent shops around your insurance policy.

Ensure Your Business is Classified Properly

Far too many businesses have employees that are not classified properly. If you have different types of employees than it is important to discuss this with your insurance agent at renewal. This can be an issue if you have some employees who are in office/clerical positions yet other employees who may be in other positions that are more physical in nature. When employees are classified improperly, it is typically cleared up during the post term audit.  Even when t his mistake gets cleared up during the end of term audit, it still causes the business to either over pay throughout the year or have an unexpected additional payment at the end of the term. In order to not over or underpay your insurance premium, make sure you are placed in the proper classification code.

 

Why Do Work Comp Rates Vary From State to State?

Citizens of the United States enjoy a very high quality of life. According to a 2016 Business Insider Article, Americans enjoyed the 9th highest quality of life of any country in the world. Workers’ compensation coverage is a huge contributing factor to this quality of life. A strong workers’ compensation system provides the ‘exclusive remedy’ that helps prevent litigation between employers and employees when accidents happen on the job. When a strong Workers’ Compensation System is in place, employees are guaranteed some wage replacement while hurt and not able to work. Employees also receive payment for all medical expenses as a result of injuries that occur as a part of normal business operations. In turn, employers can rest easy knowing they will not be held liable for employee injuries, except in circumstances where the employer intended to cause the injury or was willfully negligent.

Work Comp Rates

In the United States, Workers Comp Laws are left up to the state governments. In most states, employers are required to carry workers’ compensation insurance. There are a few exceptions to that rule, but for the most part all employers are required to carry some baseline coverage to protect their injured workers.  There are many things a state government must do to administer a workers compensation system. The two main things states do that can effect price are; determine a process for assigning rates on industry class codes and provide employers with a provider of last resort (state fund or assigned risk provider).

Provider of Last Resort

Rates can be strongly impacted by the strength of the provider of last resort. This is frequently referred to as the state fund or the assigned risk provider. The assigned risk provider is offered to employers who cannot find a carrier to offer them coverage on the open market.  The business may not be able to find coverage on the open market because of their past claims history or because they operate in a high risk industry.  How well the state goes about setting up this relationship goes a long way towards determining the rates employers pay for coverage in that state.

There are three main ways states go about providing this service.

  • State provided fund
  • Public-Private Partnership
  • Partner with an outside agency

The Workers’ Compensation Fund of Utah (WCF) and The California State Compensation Insurance Fund (CSCIF) are two examples of states who provide their own fund. These two states area good comparisons to show how rates are affected by either a strong or weak state fund. In Utah, The WCF has a 57 percent market share while the next largest provider owns only a 3 percent share of the market (2). In comparison, The CSCIF controls just over 11 percent of the market compared to just under 10 percent for the next largest provider. As a result, Workmans Comp Utah has rates that are 107 percent cheaper compared to California. This is not the only contributing factor to the discrepancy in prices, but it goes to show how drastic an impact a strong state fund can have. Now in California’s defense, the Gross Domestic Product (GDP) in Utah is nearly 1.7 trillion dollars less than California (2). That is another huge factor driving up prices in California.

Another factor impacting rates on workers’ compensation insurance is how a state goes about determining rates on all the different industry classification codes. There are two ways states can go about providing this service. They can provide their own rating bureau or they can partner with an outside agency to do this in-depth work. Most states partner with the National Council on Compensation Insurance (NCCI) for determining rates on class codes. A few states have an organization that is part of the state government who determine rates.

Determining Rates on Class Codes

New York and Arkansas are two contrasting states that are a good example for how these different approaches can effect the rates on workers comp coverage. New York has its own bureau, The New York Compensation Insurance Rating Board (NYCIRB) while Arkansas outsources these duties to NCCI. As of 2014 Arkansas has rates on Workers Comp Coverage that are 90 percent cheaper than those rates in New York. Now again in defense of New York, it does have a GDP that is just under a trillion dollars more than Arkansas. That is a strong factor contributing to higher rates, but so is the fact that New York does not use NCCI to determine rates. Typically states who have their own bureau have higher rates across the board. In most cases, NCCI is better at doing this task than the states are themselves. The one exception to this is the state of Indiana. Indiana has their own state rating bureau, but enjoys some of the lowest rates on workers comp in the country.

In both of these examples the larger states have different ways of going about administering their workers compensation policies. These different ways contribute to escalating rates on workers’ compensation insurance. Now part of the reason for them doing things differently might be the vast size of the economies in these state’s. They may not be able to outsource this job for an economy in the trillions of dollars where as another state may be able to outsource more easily because their economy only amounts to 100 billion. Both of these examples do show how the strength of the state fund and how efficiently a state determines rates can drastically effect the amount employers pay for workers comp coverage.

These factors are two of many factors that can have a huge impact on rates employers pay for workers comp coverage. This is why it is immensely important to consult with an insurance industry professional when quoting a policy. It is also important to quote with agencies who have access to many different insurance carriers within your state. The more carriers your agent can get a quote from, the more likely your businesses is to get more comprehensive coverage and lower rates on premium.