Workers Comp Corner
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This is a reprint of an article from the Insurance Journal. Click here for the original article.
Vermont to See Decrease in Costs for Workers’ Compensation Insurance
Vermont Governor Phil Scott has announced that workers’ compensation insurance will cost less for most Vermont employers when new rates approved by the Vermont Department of Financial Regulation (DFR) become effective on April 1.
This is Vermont’s first rate decrease in two years and represents the largest rate decrease in more than eight years.
Gov. Scott applauded the good news for Vermont workers, their employers and the overall Vermont job market in a recent press release issued by the Vermont DFR announcing the change.
“I am pleased to announce this substantial decrease in workers’ compensation rates, which will directly lower the cost of doing business in Vermont,” Gov. Scott said in the release. “These considerable savings will contribute to making Vermont a more affordable place to do business and creates more opportunity for businesses to thrive, grow their operations and support more workers.”
In the voluntary market, which is the competitive market offering the most favorable rates, loss costs will decrease by an average of 7.9 percent, the release stated. Loss costs are the primary component of workers’ compensation rates. Approximately 89 percent of Vermont employers receive voluntary market coverage. In the assigned risk market – the market for employers unable to obtain coverage in the voluntary market – rates will also decrease by an average of 8 percent, the release added.
“This substantial rate reduction is a clear indication that Vermont’s workers’ compensation market has significantly improved as of late,” said Vermont DFR Commissioner Michael Pieciak. “This improvement is driven by the commitment of Vermont business owners to improve the safety of their work places and the quality of medical care provided to an injured worker.”
Rate changes vary by industry and classification. Significant reductions for two Vermont industries are seen in dairy farm operations, which will see an overall decrease in rates of almost 10 percent, while rates for ski areas will be 12.3 percent lower, the release stated.
Source: Vermont Department of Financial Regulation
