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.

Purchasing 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.

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 in 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 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. This means the number of businesses buying workers comp coverage is the same or increasing compared to the previous years. The experience modification ratings of the businesses operating in the state are lower. This low rating comes from businesses operating safely and filing less claims. The lower loss-time claim frequency means workers who have been injured have been able to get back on the job fairly quickly, lowering the amount the workers compensation system has had to pay out for claims.

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.

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.

What is Unique about the Florida Workers Compensation System?

The most unique aspect of the Florida Workers Compensation System is that Florida is a No Competition State. This means Florida is one of the few remaining states in the country where every insurance company offering coverage within the state are required to offer the same rates and discounts as all other carriers. State mandated rates mean employers do not have to shop around as much as more competitive states. Business primarily need to be concerned about finding an insurance carrier willing to offer coverage on the voluntary market with the most cash flow friendly payment options and the business needs to avoid the Florida State Fund.

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. Petersburg. Castellanos 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:

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.
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
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

Florida Workers Comp Requirements

There are several requirements for businesses operating within the state of Florida. First and foremost, non-construction companies with four or fewer employees are required to purchase employees. It does not matter if those employees are full or part-time. All construction related businesses are required to secure coverage no matter the number of employees within the business. Sole Proprietors and Partners are not required to cover themselves and are exempt from coverage. A corporation and LLC may exempt officers if each owner owns less then 10 percent of the stock in the business. Sole Proprietors and Partners are not required to cover themselves and they are automatically excluded. These people can elect to be covered using form DWC-251. Corporate Officers of non-construction businesses can exempt from coverage if they own stock and hold an office on the board of directors. LLC Members of non construction businesses are treated as employees, but may be exempt of they so choose.

Miami, Usa, Beach, Miami, Miami, Miami

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.