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.”
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