New report shows cost of workers’ compensation dropped during global economic crisis

In 2009, at the start of the global economic crisis, there was a decrease of 4.4 percent in the number of employees who had workers’ compensation coverage. According to a National Academy of Social Insurance report, this drop was the largest in twenty years. The result was that the cost to employers for providing the benefits decreased by 7.6 percent, reaching $73.9 billion that year; which is the most recent year with complete data. This drop closely mirrors the overall decline in employment in the country. According to the chair…

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Workers’ compensation exposure on the rise with more mobile workers

A clear growth of workers’ compensation exposure is now causing alarm among employers and risk managers with the remarkable rise in the number of mobile workers. This was discussed in this year’s meeting of Risk and Insurance Management Society (RIMS) held recently in Vancouver. In the said forum experts advised both employers and risk managers to formulate stable and concrete rules pertinent with workers’ use of any types of mobile devices at work. According to Maureen McCarthy, Liberty Mutual, manager of Workers’ Compensation and Managed Care it is a must…

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Business claims on the rise due to discrimination

 A recent survey by the Chubb Group of Insurance Companies, show that lawsuits against businesses for discrimination have risen dramatically; and are still rising. The Equal Employment Opportunity Commission (EEOC) reported a record breaking number of discrimination charges in 2010. The Chubb Group’s report revealed that one third of employees they surveyed felt their company is less likely to protect them from various forms of discrimination. More than 30 percent also stated that they felt companies were less likely to protect consumers from id theft or data leaks. According to…

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California Insurance Commissioner rejects workers compensation rate hike for the third time

Workers comp industry recently got shot down for their request of a 28% rate increase – citing higher medical costs and claims frequency on the rise. Steve Poizner, California commissioner, said “NO” for the third consecutive time, stating the industry is not justified due to a lack of legislative procedures ignored. The Workers Compensation Insurance Rating bureau, an industry group, recommends higher rates for insurers due to recent court rulings that grant doctors more room to prescribe expensive treatments for injuries related to the workplace. Governor Arnold Schwarzenegger has been…

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