Workers Compensation Premiums Going Up

Workers compensation premiums are going up! You can learn more about workers compensation insurance issues at Workers Compensation Consultants, a professional work comp consulting firm providing a ton of free, useful information on the web.

Workers compensation insurance is sometimes a strange product. Just when I think I know most things there are to know about workers comp I'm presented with something new! So try this on for size...In general workers compensation claims have been trending down over the past years. This improvement is due to a combination of many things including a toughing of state regulations that have had a positive impact on workers comp and to an overall improvement of safety in the workplace.

So with the number of claims trending lower why are we seeing increases in rates and a general increase in the cost of workers comp? Well there are two basic items that drive the cost of workers compensation claims, medical and indemnity. Indemnity refers to the replacement of lost wages when an injured worker is off from work. Logically with fewer claims the indemnity cost would also be lower. So that leaves the medical. Medical is just what you think it is, the cost to pay medical providers for their services. Unfortunately the trend is that medical costs are going up! You know, it's the same story effecting health insurance in this country. Better improved medical services, additional costs. Oh, yea, don't forget when a medical provider has fewer cases to work on and they still need to have a certain flow of revenue to keep their doors open. They wouldn't charge more for their services would they? Less number of people to work on equates to charging more for those folks who need work performed!

Well, there you have it, the number of workers compensation claims are improving. Employers are doing what they have been asked by implementing safety programs, return to work programs, and providing much safer work environments, reducing the number of workers compensation claims. And the payoff...higher workers compensation premiums!

Thanks!