Connecticut businesses in line for insurance break

From the New Haven Register.

Many Connecticut businesses are in line for major savings on what they shell out annually for workers compensation insurance — a required cost of doing business — with carriers requesting state approval to cut a key rate calculation 16.8 percent next year on average.

The proposed rate schedule by the National Council on Compensation Insurance is subject to approval of the Connecticut Insurance Department, with NCCI representing workers compensation insurance underwriters.

It would mark a fifth straight year of declining workers compensation rates in Connecticut, with carriers getting approval last year for a 14 percent reduction in voluntary loss costs that capture the expenses carriers pay out in the form of claims for medical care and wage stipends, calculated under Connecticut law at 75 percent of regular pay. The voluntary loss cost formula excludes overhead costs and profit targets, and any offsetting investment income.

This year, underwriters are asking for even larger cuts in an insurance pool maintained for businesses that represent increased risk for worker injuries, requesting a 19.7 percent reduction on average after receiving approval last year for a 12.6 percent cut.

See the full article from the New Haven Register online.

Note from MTAC: MTAC partners at the Sinclair Firm and Acadia Insurance provide great service to their clients to help reduce costs and risk. This is a big reason why worker’s compensation rates are set to decrease. Contact Sinclair, Acadia, or MTAC for information on how to get involved with our dividend-paying Safety Group for commercial property/casualty insurance.