In case you haven’t heard, there are some important changes brewing for your Workers’ Compensation policy:
EXPERIENCE MODIFICATION CALCULATION: Claims are “split” into primary and excess losses for calculating your experience modification. The limit for the primary losses is being raised from $5,000 to $10,000 which means the first $10,000 of each claim is weighted more heavily in the calculation. It is estimated that modifications could see up to a 15% change depending on your claim frequency and severity. This change has been approved and will take place with mods issued after October 1st.
LOSS COST MULTIPLIER: The New York Compensation Insurance Rating Board submitted a filing requesting a 16.9% hike in workers compensation loss costs. This factor is one component calculating rates for each class code. The rate filing would be effective October 1st if approved.
MAXIMUM BENEFIT INCREASE: Since 2007, the benefit level paid to workers out on compensation has more than doubled. As of July 1st, it will increase from $792.07 to $803.21.
If you would like discuss how all these changes in workers’ compensation may affect your policy and premium, call The Flanders Group at 800-462-6435.