Governor Phil Scott announced that the downward trend would continue for these insurance costs.
Vermont workers compensation insurance rates are falling for the third consecutive time, announced Governor Phil Scott. The state Department of Financial Regulation approved the rate decrease, which will become effective as of April 1, 2019.
Since Governor Scott took office, there have been three straight decreases in the cost of the coverage.
The latest Vermont workers compensation rate decrease will represent a total savings of $10.5 million for employers in the state. That said, when that amount is added to the savings from the two decreases that have already taken place, employers are saving around $40 million per year on the premiums they pay for this coverage.
This year’s rate reduction and the ongoing trend of cost reduction is good news for employers as well as employees and the job market as a whole, said Governor Scott.
“I am pleased to announce this substantial decrease in workers’ compensation rates, which will directly lower the cost of doing business in Vermont,” Scott said in a statement. “These considerable savings make Vermont a more affordable place to do business, which can allow businesses to hire more workers, increase salaries and expand operations in Vermont.”
About 90 percent of employers receive voluntary market Vermont workers compensation coverage.
Loss costs in the open competitive market – that is, the voluntary market – will drop by 5.1 percent on average. These represent the main component comprising workers compensation rates.
On the other hand, the remaining 10 percent of employers in the state receive insurance coverage through the assigned risk market. This is the market for employers who don’t qualify for voluntary market based coverage. That said, their rates will also be falling. Those receiving workers compensation through the assigned risk market will see an average rate reduction of 9.2 percent, according to a VTdigger report.
The ongoing Vermont workers compensation insurance rate reductions in the assigned risk market are especially welcome for start-up businesses. Start-ups must typically receive coverage through that market due to their short history within the field. “This continued rate reduction is a clear indication that Vermont’s workers’ compensation market is moving in the right direction,” said Department of Financial Regulation Commissioner Michael Pieciak.