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Change Coming in Workers' Compensation

By June 27, 2013 August 22nd, 2018 Uncategorized

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.