Early in April 2013, the Pennsylvania Insurance Department announced a reduction in the workers’ compensation rate of 4.01 percent. The commissioner of the Pennsylvania Insurance Department stated that the department is very pleased with the rate reduction. This most recent rate reduction is the second one in a row.
Although this reduced rate of workers’ compensation could save Pennsylvania employers a cumulative premium amount of up to $110 million, some employers will not be affected by the decrease. Employers who are unsure of whether they qualify for the reduction should verify their eligibility with their insurance agent before the renewal date of their contracts. The rate reduction is based on several factors, including risk classification, claims history and payroll.
Pennsylvania employers are reaping the benefits of providing safer workplaces according to the Labor and Industry secretary. More than 10,000 workplace safety committees have been established and certified by the state. These committees are credited with protecting the safety of more than 1.3 million workers, resulting in a reduction of nearly $500 million in workers’ compensation premiums paid by employers.
Despite safer work environments and a reduction in workplace accidents, some employees will still be hurt on the job. Many times, workers’ compensation claims that stem from workplace accidents escalate into complicated lawsuits. Employers may attempt to deny responsibility for the accidents, and the insurance carriers representing them can be intimidating to the injured employees. In Pennsylvania, workers who suffer injuries while they are at work may wish to seek the advice of workers’ compensation attorneys who may clarify their rights and options and recommend courses of action.
Source: Central Penn Business Journal, “Pa. announces workers’ compensation rate reduction,” Heather Stauffer, April 1, 2013