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What’s in Store for the Workers’ Comp Industry?

What’s in Store for the Workers’ Comp IndustryWorkers’ Compensation was one of America’s first safety-net platforms, however there have been plenty of modification over the last few decades. Especially in the recent harsh spotlight of income and economic inequality among workers, Workers’ Compensation Insurance programs are facing scrutiny to be revitalized.

What was originally implemented to protect employers from suffering devastating financial damages is now seemingly being dismantled state by state. According to ProPublica, Workers’ Compensation was born in the early 1900s as a grand bargain by businesses as awareness of workplace accidents became more evident. In exchange for forfeiting their right to sue their employers, workers were provided with medical care, wage assistance, and compensation for permanent disabilities.

However, recent studies have shown the shift of responsibility from Workers’ Compensation to public programs like Social Security and disability insurance to cover injured workers. ProPublica also stated that updates in 33 states reduced employee benefits, gave employers and insurers more control over medical care, and made it more difficult for workers with certain preexisting injuries and diseases to qualify for benefits.

In terms of insurance costs, there are several factors that contribute to premium rates for employers. For example, history of claims filed, the number of workers, wages, and the local economy can affect rates. When employers boost hiring or grant raises, premiums usually increase, as well. While Workers’ Comp rates are at a historic low, there is no federal oversight of these regulations. Each state varies immensely on their payment figures. For example, reporters found that the loss of an eye as a result of a workplace injury is $27,280 in Alabama; yet the same injury pays $261,525 in Pennsylvania.

Given these circumstances, Workers’ Compensation is under extensive reform nationwide. At Associated Specialty Insurance Agency, we are committed to solving your clients’ Workers’ Comp needs throughout New Jersey, Pennsylvania, New York, Connecticut, Delaware, Maryland, Virginia, North Carolina and Florida. For more information about our services, contact our knowledgeable specialists at (866) 679-7457.

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