Three Reasons' Workers' Compensation Insurance Rates Could Change Nationwide

Feb 15
14:32

2011

Kathryn Bowen

Kathryn Bowen

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Workers' compensation insurance could be seeing changes in rates in 2011. Learn more about that and employment practices liability insurance.

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Everyone in the healthcare provider industry faces a lot risk from day to day. As a result,Three Reasons' Workers' Compensation Insurance Rates Could Change Nationwide Articles many providers have obtained professional liability, employment practices liability insurance and other types of coverage to stay safe in today's culture. However, one policy required for employers across the spectrum of industries is workers' compensation insurance. The policy protects from lawsuits associated with workplace injuries. The healthcare industry certainly faces a high risk of injury on the job when dealing with sharp instruments and people that are ill. At times an employee could unknowingly be exposed to a life threatening situation. All these factors play into the rates that are assigned to a business for the policy. However, there are three other factors that could have an effect on your coverage in 2011.

Slowing Reduction In Claim Frequency

Over the years, a stabilizing factor in rates has been the reduction in claim frequency which has counteracted the increase of the payout per claim. However, researchers are seeing a slowing of this reduction, and it may not be able to balance out the claim payouts. Some have pointed to a hurting economy that has forced employers to make cutbacks potentially involving safety initiatives in the workplace. However, it is unclear if this trend will continue or if it is a temporary situation. If it does continue, it will have a major impact on workers' compensation insurance rates in 2011.

Connection Between The Wellness Of The Employee And Workplace Safety

Research has found that there is a correlation between the wellness of an individual and the amount paid out in workers' comp. Studies show that individuals that have good overall wellness are able recover more quickly from an injury. In turn, this reduces the amount of the claim for a person in good health as compared to an obese individual. The more that companies are doing to promote good health in the workplace could have a positive effect on their coverage over time.

Injuries Keeping Employees Out Of Work Longer

A third factor that could have an effect on your rates is that injuries on the job are keeping people out of work longer. The belief is that this is attributed to the current economic climate in the United States. With depleting profits, businesses are unable to provide jobs in the meantime for employees that are injured on the job. As a result, the burden of payment falls entirely on coverage providers. Since employees are out of work longer, payouts are higher per claim. This increase in cost is passed back to the business through increased rates.

Finding Coverage For Your Business

With the various types of coverage needed by businesses, including employment practices liability insurance, the cost of each policy is important. If your company is looking to cut back on cost, the best thing to do is to find good rates for workers' compensation insurance and other policies that are needed. To get more information about employment practices liability insurance and workers' comp, contact a coverage provider today.