Kentucky Workers Compensation Rates Are on The Move

Marking more then a decade of declines, Kentucky Workers Compensation Rates are declining again in 2019

In Kentucky, businesses will be paying less for workers compensation insurance in 2019. They will be paying 10.8 percent less on average compared to 2018. Amazingly, this is the 13th consecutive year of continuing declines for workers comp rates throughout the state. There are certain industries that will see a majority of the declines. Those industries that benefit the most  include manufacturing, office and clerical, contracting, as well as goods and services. Depending upon the specifics surrounding the work provided, some industries may see little or no decrease on Kentucky Workers Compensation Rates.  Mining is one such industry that will not be benefiting from declining workers compensation rates. In 2019, Coal Classes increased 28.4 percent for surface mining and 29.5 percent for underground mining.  For the most part, most industries operating in the state of Kentucky, will see improved workers comp rates in 2019.

Seal for the Commonwealth of Kentucky

Why are Kentucky Workers Compensation Rates Declining?

Kentucky Workers Compensation Insurance Rates in 2019 are declining marking more than a decade of continued declines. There are a number of reasons for these declines. Stability in written premium is a strong reason why premium rates remain stable. Also, lower combined ratios throughout the state, and lower loss-time claim frequency have contributed to keeping the market stable and premium rates low.  Some legislative reforms have contributed to the continued decrease in Kentucky Workers Compensation Rates in 2019.

House Bill 2 (HB2) was another substantial factor in continued positive rates for workers comp coverage. HB2 cuts off workers’ compensation benefits when the employee becomes eligible for Social Security benefits, two years after the injury or last exposure. Also, HB2 attempts to re-examine the cut-off provision attempting to be all-inclusive. Now all income benefits will terminate when the employee reaches seventy (70) years of age, or four (4) years after the injury or last exposure, whichever last occurs. Previously the state terminated benefits based on social security eligibility. Insurance carriers, who are actively quoting policy in the state of Kentucky, anticipate HB2 will result in lowering the amount insurers pay out for part-time and permanent disability benefits.

Louisville, Kentucky is a hotbed for horse racing

Kentucky Workers Compensation System Over Haul

The Kentucky State Legislature decided over the last half of 2018 to overhaul the workers compensation system. This will be the most drastic changes to the state system in more than two decades. HB2 spearheaded these changes. HB2 aimed to attack the underlying costs within the system and improve how the system works for everyone involved. Medical expenses and benefits will be impacted. There will also be steps to tackle the growing opioid epidemic within the state of Kentucky.  The overhaul will implement pharmaceutical medical treatment guidelines for medical facilities working within the workers compensation system.  The guidelines are trying to deliver appropriate care to injured workers while limiting waste related to opioid abuse.

In addition to addressing the opioid epidemic, HB2 is also attempting to increase maximum compensation rates temporary and permanent partial disability benefits. These improvements create access to vocational rehabilitation services and makes improvements to the dispute resolution system. The final big change brought on by HB2 is the bill places a 15 year benefit cap from the date of injury that will apply to some cases (not all cases). Most workers who fall in the regulations for this cap eventually return to the workforce and the issue never becomes a problem for the injured worker. It will limit the amount insurers within the system have to pay for some permanent disability claims.

How Can Business Owners Maximize Savings?

Embrace an Ergonomically Friendly Workplace 

Ergonomics in the workplace is gaining support for many industries for a variety of reasons. A lot of insurance claims result from repetitive use injuries. Setting up your employees with the most ergonomically friendly work station can go a long way towards preventing injuries and keeping the costs of insurance claims down.

Monitor Employee Morale

Monitoring employee morale can be an effective way to keep employees happy, healthy, and productive. Disgruntled employees have a tendency to fester and create a number of disgruntled employees. When employee morale is low, an unsafe work environment can happen. Talking to employees and taking their recommendations seriously can help your business improve employee morale and help your business in a number of ways.

Pat Attention to all Near Misses

The best way to learn from near misses is to create an atmosphere where employees feel they can talk about safety situations without fear of repercussions. Honesty is always the best policy. Allowing your employees to talk to you about safety situations allows a business leadership team to learn from the near misses and improve the operations moving forward.

Indiana Workers Compensation Rates are Declining by 7.6%

See What is Contributing to The Improvements in The Indiana Workers Compensation System

Workers Compensation Rates in the state of Indiana are declining in 2019. The amount they are declining is by an average of 7.6 percent. The Indiana Department of Insurance approved the rate decrease in October.  The savings amount to a total of more than $60 million for the business community in Indiana. This marks multiple years of declining workers compensation rates which makes Indiana one of the cheapest states in the country for businesses to buy Workers Compensation Insurance. In fact, as of 2017 workers comp rates in Indiana were 43% cheaper than the national average. Many small business owners still pay far too much for coverage by not taking advantage of all the credits and discounts available to them through partnering with an independent insurance agent.

Covered Bridge in the Indiana Coutryside

Why are Indiana Workers Compensation Rates Declining?

Indiana Workers Compensation Rates in 2019 are decreasing because a number of reasons. The highest contributor to the declining rates is the lowering frequency of insurance claims. Because of these decrease in the frequency of claims, the insurance carriers do not have to pay out as much for those claims. These savings allow insurance carriers to pass on some of those savings to their customers, the business community in Indiana.

Additionally, the department of insurance credited a robust job market for declining rates. this is because as the economy strengthens more people create businesses which in turn creates a larger pool for insurers to collect premium. Not all businesses will receive the same decline in rates. Some businesses we see a more significant decline while some businesses may see little to no decline in premium. This is attributed to a number of factors including industry, payroll, and claims history.

Indiana City Skyline

How is the Indiana Workers Compensation System Unique?

The Indiana Workers Compensation System has some aspects of it that are unique from other states.  Like most states, in Indiana employers are required to purchase workers compensation coverage if they employ one or more workers. Most states are NCCI States, meaning they use the National Council for Compensation Insurance to determine rates on premium for the various classification codes throughout the state.  Indiana does not primarily use NCCI. The state uses the Indiana Compensation Rating Bureau as the assigned risk provider and to establish pure premium rates. The ICRB does partner with NCCI for some of the workers compensation system functions including ratemaking and for using the NCCI basic manual. The ICRB does not use all NCCI Class Codes. As a business owner, it is important to always confirm your classification codes with the ICRB.

 

What Can Indiana Business Owners Do To Amplify Workers Compensation Savings?

Understand The Businesses Experience Modification Rating

Understanding a businesses experience modification rating is one of the single most impactful things a business owner can do to positively effect what the business pays for workers compensation rates. This rating is the main factor underwriters used to determine if they are going to offer a business coverage and if so, how much they are going to charge for it. Knowing what goes in to this rating and taking adequate steps to keep it low will have a lasting impact on what a business pays for workers compensation insurance coverage.

Bundle all Policies

Bundling all of a businesses insurance policies into one package of policies is a great way to save on premium. Most businesses near more coverage than just the legally required minimum coverages of Workers Compensation and General Liability. Most carriers have packages offered in a Business Owners Package (BOP) and Commercial Policy Package (CPP) that are designed specifically for businesses within a particular industry. Bundling multiple policies together with one carrier typically saves you on premium and prevents gaps in coverage. A gap is when a business has two policies that they think cover a claim, but each policy has an exclusion for a particular claim. This commonly occurs when a business purchases multiple policies from multiple carriers.

Pay Premium in Full

If your business has cash on hand and has the ability to pay the full amount of yearly premium, it is in your best interest to do so.  The insurance carrier will typically give a business a discount if they are able to pull their premium in full.

Make your Workplace Ergonomically Friendly  

Another way to help control what your business pays for workers compensation premium is to ensure every employee has a workstation that is ergonomically friendly. This may cause customization based upon each individual employee, but focusing on an ergonomically friendly work space on the front end can save the business enormously on insurance claims from repetitive motion issues like carpal tunnel syndrome.

Monitor Employee Morale

Keeping a tab on the morale of your workforce is a good way to prevent accidents from occurring. Happy employees are healthy employees and healthy employees create less insurance claims.  Taking additional steps to be proactive about employee morale can help a business deal with employee morale before it becomes a much bigger problem.

Workers Comp Rates in North Carolina are Declining by 17.2% in 2019

See how this decline will impact the North Carolina Business Community

In the year 2019, North Carolina Businesses will be paying an average of 17.2% less for workers compensation insurance premium. This is in addition to a 12.5% decrease in 2017 and 8.5% decrease in 2016.  According to Mike Causey, the North Carolina Insurance Commissioner, “This rate decrease should serve as an economic boon to the state’s small businesses. I am pleased to approve the North Carolina Rate Bureau’s request for lower rates because it will ultimately put more money in the pockets of business owners and our consumers.” Prior to this decrease, North Carolina was previously ranked 23 out of 50 states when it comes to workers compensation premium. This decrease should lower the ranking significantly. Some industries did better than others. The manufacturing industry will only see an average decrease of 6.5% while office and clerical businesses will see a decrease of 19.3%.  North Carolina is the 10th most populous state with more than 47% of the workforce working for a small business. These changes should help an enormous amount of the population and have positive impacts on the economy at large.

North Carolina grunge wood background with North Carolinian State flag painted on aged wooden wall.

Why are North Carolina Workers Compensation Rates Declining in 2019

There are a number of reasons why North Carolina Workers Compensation Rates are coming down in 2019.  One large reason for the decline is the strength of the state provider in the North Carolina Workers Compensation System. North Carolina has their own governing body meaning they partner with the National Council on Compensation Insurance (NCCI), but they do not let NCCI do all of the recommendations within the system.  The state governing body allows NCCI to gather policy data, detailed claim information, and experience rating. The state than handles other parts of the system. This allows NCCI to do what it does best, but allows the state to take on other aspects it can do without the help of NCCI.  In the end the partnership is a win-win for the business community throughout the state.

An additional reason for the favorable climate for workers comp in North Carolina is insurance carriers having and paying out fewer workers’ compensation claims. Because of the large amount of these declines in claims, the insurance carriers are able to pass on the savings to customers. According to Jeff Eddinger, Senior Division Executive at NCCI, “The big theme is workplaces continue to be safer”.  Safer workplaces make for less claims and the claims that are reported are less severe in nature.

There were also reforms to the workers comp system made in 2014 and 2015 that contributed to the declines.  Those reforms were adjustments to the fee schedule creating a 5 percent less in payments for nonhospital providers on top of a 24 percent reduction in outpatient treatment costs. The reforms also contributed to an 11 percent reduction in in patient treatment.

Blue Ridge Mountains in North Carolina

How Can Businesses Maximize Savings on North Carolina Workers Compensation Rates 2019

Use an Independent Agent

Using an Independent Agent is typically one of the best ways to make sure your business is the best value for your worker compensation premium. It is a good way to save because an independent agent does not work for one particular insurance carrier. They are a true middle man who knows which carriers are actively looking to quote policies in your state or your industry. This knowledge allows an independent agent to make the carriers compete against each other for your business. The result of this competition is better coverage at lower rates for your business.

Understand Your Experience Modification Rating

There are many things that go in to a businesses experience modification rating.  The main thing a business can do to control this rating is to run a safe operation and limit the frequency and severity of insurance claims. If you take some time to talk to your insurance agent about the ins and outs of your operations and ask them what you can do to control the rating, it can help limit what your business pays in insurance premium.

Prepare for Natural Disasters

In the state of North Carolina, natural disasters are a part of life. Tornadoes are a risk in the Spring and Summer. Hurricanes come around every Fall and cause floods in their aftermath. In recent years the mountains have dealt with dangerous forest fires and some areas have even experienced a small earthquake. No matter where your business is located or what risks you think you can predict, natural disasters are something all businesses need to prepare for.

Implement a Safety Program

A safety program can deliver the most impact for you business when it comes to what a business pays for workers compensation premium. A safety program is simply the right thing to do. If implemented correctly, it will keep your staff safe, healthy, more productive, and absent less frequently. It will reduced the amount of damage done to the equipment a business owns.  It is equally important to document all safety meetings for when you are purchasing commercial insurance and when you have a claim occur.

Connecticut Will Experience 17% Decline in Workers Compensation Rates in 2019

Connecticut Workers Compensation Insurance Rates are going to be going down in 2019!!!

Connecticut Workers Compensation Rates are on the decline for next year. Decreasing by an average of 17%. This is a significant amount of a decline and it marks the fifth year in a row that businesses have paid less for workers compensation insurance premium. The Connecticut Insurance Department previously approved rate declines of 3% in 2014, 4% in 2015, 11% in 2016 and 14% in 2017.  Over this period of time rates have declined by just under 50 percent.

Red Barn located in the Connecticut Countryside.

Why are Connecticut Workers Comp Rates Going Down?

Connecticut Workers Compensation Rates are decreasing because of a decrease int he number of workplace injuries and a decrease in the number of claims filed by business throughout the state. Both of these factors are a result of business owners implementing more effective safety programs that include return to work programs that help injured workers get back on the job quicker. In addition to these improvements, Connecticut is also seeing lower medical costs per claim.

What can Connecticut Business Owners do to Maximize Savings?

Shop Your Policy Around

It is wise to look around to other carriers from time to time. It is not wise to change carriers frequently based only on price. Carriers value customers who have been with them for multiple years. When a business experiences a year in which there is a large claim or a year in which the business experiences multiple claims; the carrier will be more kind to the business if they are a return customer. This can prevent your business from being dropped from coverage altogether or from your rate increasing significantly. It is important to shop around to make sure your carrier is competitive with the open market, but it is not a good idea to change carriers frequently based only on price.

Partner with an Independent Agent

One of the best ways to shop your policy around is to partner with an independent agent who can shop your policy around for you. An independent agent has relationships established with multiple carriers, not one or a select few. This allows them to quote your business with many carriers in an attempt to get better coverage and lower rates. Independent agents know which carriers are hungry to offer coverage to a particular industry or a particular coverage. This allows them to leverage this knowledge to get your business better coverage at lower rates.

Choose The Pay as You Go Option

The Pay as You Go Workers Compensation Option is great for some cash strapped businesses because it allows them to get coverage in place at significantly less up front cost compared to a traditional workers comp policy. A Pay as You Go Policy also decreases the likelihood of a mid-term audit because the premiums are paid each month based on the real-time payroll from the previous month.

Steep Decline Continues for California Workers Comp Rates 2019

California Workers Comp Rates 2019

In 2019, California Workers Comp Rates will be on the way down for the 5th year in a row. Next year the rates will be going down on average by 23.5 percent compared to 2018.  Since 2015 the rate has dropped every six months accounting for a total average savings of 72 percent.  According to Dave Jones, the California Insurance Commissioner, released a statement in November stating, “Cost savings in the workers’ compensation system have helped insurers and employers deserve to share in the cost savings through lower premiums,”

California has seen significant decreases in workers comp premium over the past several years, but the business community within the state still suffers from some of the highest rates of any state throughout the country.  According to the Oregon premium rate ranking study. The state of California has maintained the same position as the most expensive state in the country to purchase workers compensation coverage.  Workers’ compensation premiums in California cost 176% of the national median.

California Workers Comp Rates 2019

What Contributed to the Decrease in California Workers Comp Rates?

State Bills

California Workers Comp Rates 2019 are decreasing for a number of reasons.  Many experts credit state bills 863 and 1160 as well as assembly bill 1244.  In total, these three bills have contributed to favorable medical loss development because of an acceleration in claim settlement.

CURES Opioid Program

A huge contributor to the decrease in workers compensation premium has been the savings the system has seen in relation to the opioid epidemic.  Last year the state workers compensation system paid out one fifth as much as it did in 2013 ($3,204 to $15,687 per 100 claims), according to WCIRB, the California Workers Compensation Insurance Rating Bureau..

This decrease has been because of the way the state has responded to the opioid epidemic. The state developed a program called CURES (Controlled Substance Utilization Review and Evaluation System). THe CURES Program created a database that lists Schedule II, III, and IV controlled substances that are prescribed by licensed facilities. This program requires pharmacies and other businesses that distribute these substances to provide specific information to the Department of Justice on a weekly basis. This has significantly decreased the amount of opioid abuse throughout the state and in turn benefited the workers compensation system.

Golden Gate Bridge

How Can Businesses Maximize Savings on California Workers Comp Rates?

Shop Around Your Policy

It is not a wise decision to switch carriers every year for a slight drop in price, but it is important to make sure your carrier is offering you a competitive price. Shopping your policy around periodically can help you maximize coverage and savings.

Partner with an Independent Agent

One of the best ways to shop around your policy is to partner with an independent agent. Especially an independent agent who has a relationship with as many carriers as possible This allows them to shop around your policy for you in an attempt to get more comprehensive coverage at lower rates.

Communicate

When you are talking to your independent agent, it is important to take an adequate amount of time to tell them about the ins and outs of your business. The more your insurance agent knows about your business the more likely they are to get your business the comprehensive coverage it deserves.

Tell Your Agent What You Value Most

When you communicate with your independent insurance agent, it is important to tell them what you value most. Each day, insurance agents speak with many people from many different walks of life. They can only act on the information you give them. If you value the lowest price possible than tell them. If you want the most comprehensive package of products no matter the cost than it is equally important to tell them.  No matter what it is that you value as a business owner, it is immensely important to tell your insurance agent what you value.

Bundle Policies

Consider bundling all insurance policies together in order to maximize savings and to ensure there are no gaps in coverage. Insurance carriers are much more likely to dig deep for discounts and credits when they know they are going to sell a business multiple policies.

Lower Limits

Lowering your limits can be dangerous in some instances. This is why it is important to speak long and honestly with your agent about the actions of your business.  Lowering your limits can be a good way to lower premium.

Ensure Your Business is Classified Properly

Far too many businesses have employees who are classified improperly. Some employees work in lower risk positions and for purposes of workers compensation, they cost less for coverage. When employees are classified wrong, it can cause your business to over or under pay for premium. This discrepancy usually gets fixed during a post term audit, but it can cause a surprise when your business owes additional premium at the end of the term.

Pay as You Go

Another way to save on premium is to choose the pay as you go option. With a traditional workers compensation policy, 25-33 % of the total premium is due just to get coverage in place. With a pay as you go plan, a business can get coverage in place for as little as a few hundred dollars. The rest of the payroll will be due each month based upon the actual payroll from the previous month. A traditional plan is based upon an estimated payroll from the previous year or a number of previous years. A pay as you go plan can help free up cash for other business needs and reduce the need for a mid term audit.

Safety Program

Safety programs are a great way for businesses to reduce injuries, lessen missed time by employees, and lower what the business pays for multiple lines of commercial insurance. It is important to document all activities related to your safety program so you can show this documentation to your insurance carrier when quoting policies.

Return to Work Program

In addition to a well-documented safety program, a return-to-work program can help your business decrease the amount of time injured workers spend off the job. If you stay in business long enough you are going to experience an injured worker. When that worker is off the job they have time to develop new habits not associated with their daily work routine. Statistics show that the longer an injured worker spends away from the work, the more likely the worker is to never return to full-time employment. Using a return to work program to get an injured worker back on the job, even in a limited capacity, can significantly help your business get that employee back to full-time employment.  This will have a dramatically positive impact on your businesses experience modification rating.

Colorado Workers Compensation Insurance Rates 2019

In 2019 Colorado Workers Compensation Insurance Rates are Declining by 10 percent

Colorado Workers Compensation Insurance Rates in 2019 will be decreasing by 10 percent on average across all classification codes. This decrease will go in to effect on January 1, 2019; representing  the fourth straight year Colorado has enjoyed a rate reduction for workers comp coverage. In 2018, rates declined by an average rate of 12.7 percent.  In addition to this decrease Pinnacol, the state provider, announced a dividend payout of nearly $70 million. This is also the fourth consecutive year Pinnacol has paid out a dividend.

Colorado Workers Compensation Shop 2019

How is the Market for Colorado Workers Compensation Insurance?

Colorado Workers Compensation Rates are declining for the fourth consecutive year.  As of 2017, rates were 19 percent lower than the national average.  This year, the Colorado Division of Insurance approved a recommended decrease of 16.7%. This decrease was based on recommendations from the National Council on Compensation Insurance (NCCI).

The loss costs are a component of workers’ compensation insurance premiums that are based upon the average cost of lost wages compared to medical payments to workers who are injured on the job. There are a lot of factors that impact overall workers comp costs, including the frequency and severity of claims, the number of required treatments, the health care costs, and overall costs to cover workers compensation claims. This years decrease in premium can be attributed to a number of factors, but a significant factor was the reduction in the number of claims filed which has fallen from 26.3 million in 2002 down to 18.4 million in 2016.  

Not all employers will see a decrease as large as other businesses. Some will see a smaller decrease and some will see no decrease at all. The classification code compared to the experience modification rating of the business will also contribute to the amount of decrease a business experiences.

 

Workers Compensation Rates Tennessee 2019

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Workers Compensation Rates Tennessee 2019

Workers Compensation Rates Tennessee 2019 are heading in the right direction again this year. This time in the amount of a 19 percent decrease on recommended workers compensation rates for businesses throughout the state. This is the third consecutive decline preceded by decreases of 12.6% in March of 2018 and 12.8% in March of 2017.  Iconic Nashville, Tennessee where businesses will enjoy lower workers compensation rates tennessee 2019

Why Workers Compensation Rates Tennessee 2019 are Decreasing?

Workers Compensation Rates Tennessee 2019 are decreasing for a number of reasons. Many within the business community of Tennessee credit reforms made to the workers compensation system by Govenor Bill Haslam in 2013. Since these reforms were enacted, loss cost reductions have decreased 48 percent. Decreased workplace injuries account for a substantial amount of the savings. Loss-time frequency also has contributed to the decrease in rates for workers compensation premium. Loss-time frequency refers to the amount of money insurance carriers have paid for lost wages when injured workers are not able to work because of workplace injuries. Within the workers compensation system, the average cost per case and the average medical cost per case have remained stable in addition to other significant decreases. Waterfall in Eastern Tennessee

What can Businesses do to Maximize Workers Compensation Rates Tennessee 2019?

Workers Compensation Insurance can rise and fall from year to year depending upon a number of factors within the individual state. Even though rates have declined significantly over the past 5 years in the state of Tennessee, business owners should not get comfortable with the savings they are receiving. There are a few cost effective ways to maximize savings in addition to the savings being based on to business owners by the state workers compensation system.

Shop Around Periodically

It is not advisable to switch agencies or carriers each year for a slight decrease in premium, but it is beneficial to shop around to ensure you are maximizing savings. It is not a good idea to change carriers frequently because when a claim does occur the carrier will take in to account how long you have been a customer when they are determining whether or not to raise your rate or deny your business coverage altogether.

Bundle Policies

When an underwriter knows they are likely to sell a business multiple policies, they are much more aggressive with credits and discounts. In most states, Workers Comp and General Liability are required by law for nearly all businesses. In most cases, these are not the only policies most businesses need. Securing additional coverages is the best way to fully protect your business and to maximize savings.

Partner with an Independent Agent

In order to shop around your policies and maximize savings you need to partner with an experienced insurance professional. An independent agent is usually the best way to do this because they have the ability to shop your policies around for you. This will save you time and maximize savings. They can maximize savings because they know which carriers have an active interest in quoting each industry and policy. A captive agent sells the products of one carrier or a select few. Because they are tied to one carrier, they cannot maximize savings by looking around for you.

Have a Documented Safety Program

A well-documented safety program is the best way to save when purchasing insurance and it is the best way to prevent an increase in premium after a claim. When a business has a year in which there are several claims or one severe claim, it is more than likely that their premium will go up. If there is a well-documented safety program in place, the independent agent the business partners with can use that program to show the carrier that the business is taking the proper steps to limit these claims. It can be used to show the claims are out of the ordinary and not a sign of future losses.

Make Sure you are Classified Properly

Many businesses are not classified properly. This can happen when a business has many employees who are in different job codes. If your business has many office employees and a few employees who work manual labor, it is important to classify all employees properly. This can also be the case when you have employees who work part of the week in one role, but at other times they work in a role where they must be classified differently. Partnering with a payroll company can help your business stay on top of these discrepancies.

Alaska Workers Compensation Insurance Rates 2019

Alaska Workers Compensation Insurance Rates are Declining in 2019 

In 2019 Alaska Workers Compensation Insurance Rates are going to decline by 17.5%. This decrease in recommended workers compensation insurance premium rates was announced by the Alaska Division of Insurance on November 6th and will go in to effect the first of the year. This reduction is in addition to a 5.4% decline in 2018.  These two reductions have contributed to the business community in Alaska paying 25% less for workers compensation insurance premium since 2015.  According to the Alaska Labor Commissioner Heidi Drygas, “This would be the biggest year-to-year decrease in workers’ compensation rates in 40 years. The department worked tirelessly to reform the workers’ compensation system to increase efficiency and lower medical costs, both major factors in premiums.”

Alaska Workers Compensation Insurance Rates are high because of the remoteness of the state recognized in this photo of Mount McKinley.

What Contributed to Declining Alaska Workers Compensation Insurance Rates

Premium for Workers Compensation Insurance has declined in Alaska because of a number of factors. Continuing declines in claim frequency and favorable medical costs are two major factors in the reduction. Governor Bill Walker spoke about the declines in front of the Department of Labor and Workforce Development when he said, “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.”

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

There are many ways business owners in the state of Alaska can maximize their savings when it comes to commercial insurance. Especially when it comes to state mandated workers compensation . Here is a list of five things a business owner should consider in order to maximize savings on 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

 

 

Workers Compensation Florida Rates 2019

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Volatility in Workers Compensation Florida Rates 2019 Continues

This year the Workers Compensation Florida Rates 2019 are moving in a positive direction for small business owners. The Florida Insurance Commissioner, David Altmaier, has approved a revised workers compensation rate filing of 13.9 % decrease.  According to Altmaier, ‘The rate increase amounts to approximately $454 million in savings for employers’. This is especially good news because the Florida Workers Compensation System has been in flux for the past few years.

Workers Compensation Florida Rates

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

This decrease comes after an increase for Workers Compensation Florida Rates 2018. There have been several years of instability within the workers compensation system in Florida. In 2017 there was an increase of 14.5%.  This increase was attributed to two state Supreme Court decisions that have put the system in flux. Those two cases were – Castellanos v. Next Door Company and Westphal v. City of St. Petersburg.

In the Castellanos Case an injured employee sued and the case was taken all the way to the state supreme court. The supreme court ruling was ruled invalid because it limited the ability of an injured worker to get reasonable amount in judgments for attorneys fees. Basically the ruling meant judges no longer had to stick to strict guidelines when ruling on workers compensation cases.

In the Westphal Case, there was a rule that was challenged that a 104-week statutory limitation on temporary total disability benefits is unconstitutional. The court ruled this portion of the law unconstitutional because it denied injured workers proper access to the courts. The Florida Supreme Court extended this period to a 260-week limitation. This 260-week limit is more in line with states throughout the country.

These two court cases caused the initial increase in workers comp premium throughout the state of Florida. Since this increase there have been three decreases every six months. Those decreases were in November of 2017 for 9.5%, in May of 2018 1.8%, and this 13.9% decrease set to go in to effect January of 2019. These decreases have contributed to the volatility of Workers Compensation Florida Rates.  For the time being, 2019 will be a year when small businesses will benefit from lower rates on workers comp premium for the time being.

Workers Compensation issues for Medical and Dental Offices

4 Tips for Medical and Dental Offices to Smoothly interact with their Insurance Company.

Medical and Dental Offices have unique risks that differ depending upon the location, size, and scope of the business. Because of these unique risks, a business in this industry needs an insurance agent and insurance carrier that are prepared to address these unique risks. As a Small Business Owner of Medical and Dental Offices, you more than likely know the importance of adequate insurance. Your clients carry health care insurance coverage so they can receive the treatment from your business without jeopardizing their personal finances. As a Small Business Owner, it is wise to also properly protect the investment you make into your business. Here are four Tips for securing adequate insurance coverage and saving on premium.

Medical and Dental Offices

 Take your time to Purchase Insurance for your Medical and Dental Offices

Medical and Dental Offices are unique and they have unique risks. Some offices are for general practice physicians. Other offices offer sports medicine, chiropractic services, or physical therapy. Still other offices offer dental or orthodontic services. No matter what type of medical service your business offers, it is important to insure the business properly. Purchasing Insurance is not a wise time to rush through a decision. Carve out an adequate amount of time to prepare for and talk to your independent insurance agent.

Keep Open Lines of Communication with your Insurance Carrier

When you are establishing a new relationship with an insurance agent, it is important to take an adequate amount of time to talk about the day to day operations of your business. They can help you understand risks you may not have realized that you face. Also, They can only make a recommendation about insurance coverage based upon the information you give them about your business. The more information they have about your business and the more information you give them about what type of coverage you prefer, the more likely they are to provide the type of coverage that is best for your business.

Partner with an Independent Insurance Agent when purchasing Insurance for Medical and Dental Offices

There are several reasons why partnering with an Independent Insurance Agent is always the best way to go about securing the best insurance coverage for Medical and Dental Offices.

  • An Independent Agent Works for You
  • An Independent Agent gives you choice
  • An Independent Agent can be your advocate
  • An Independent Agent can save you time and money

An Independent Insurance Agent is a true middle man between you, the business owner, and the insurance carrier you are purchasing coverage. In some industries, eliminating the middle man is a good way to cut costs. In the insurance industry, that is not always a wise decision. An independent insurance agent can give your business choice when it comes to choosing coverage, where as a captive agent can offer you the coverage of one or a select few carriers. This will save you money because the independent agent forces carriers to compete for your business. They can also save you time because they shop insurance so you don’t have to. Finally, an independent insurance agent can be your advocate when you have to file a claim. It is important to keep them in the loop when you have a claim because they can negotiate on your behalf if the carrier is not living up to their end of the bargain. They can also be an advocate when you renew coverage at the end of a year when you had several or a sever claim.

Talk about Safety

As the owner of the business and the lead physician within Medical and Dental Offices, Doctors set the tone for the other employees within a business. If you focus on safety, the rest of the staff will follow suit. Because of the nature of the business, cleanliness is important to all aspects of your business. This is important to not only take care of your patients, but also to keep a healthy staff. Your business cannot operate without a healthy staff. Focusing on safety in all aspects of the business will keep your employees safe, cut down on the frequency and severity of insurance claims, and can contribute to a lower insurance premium over time.

 

Business Liability Category: Health Care Providers

SIC Business Insurance Codes:

  • 8011: Offices and Clinics of Doctors of Medicine
  • 8042: Offices and Clinics of Optometrists
  • 8031: Offices and Clinics of Osteopathy
  • 8021: Offices and Clinics of Dentists

NAICS Liability Classifications:

  • 621111: Office of Physicians (Non Mental Health)
  • 621320: Office of Optometrists
  • 621320: Office of Dentists
  • 621498: All Other Outpatient Care Centers
  • 621330: Office of Mental Health Practitioners
  • 621399: Office of Other Health Practitioners

Business ISO General Liability:

  • 66561: Medical Office

Common Workers Compensation Class Codes:

  • 8832: Doctors, Physicians and Office Staff