On Thursday May 17th, 2012 the NY Workers Compensation Rating Board announced in RC Bulletin 2302 that effective October 1st, 2012 the NYCIRB proposes an increase in the “average” loss cost rating of 11.5%.
We love it when they throw in the word “average” which means some classes of business like transportation, human services, and construction may really experience an expense increase beat down! We are waiting for more details from either the NY Workers Compensation Rating Board or the NY State Department of Finance to see how it really shakes down. I mentioned transportation, human services, and construction as those industries typically experience far more workers compensation claims than say a Law Office.
These are on top of “average” rate increases in 2010 and 2011 of nearly 9% each year! Fortunately the smart business owners know that there is much that can be done to mitigate the increased workers compensation costs. It starts with partnering with a Risk Advisor who can help set a strategy to drive companies experience mod factors down to the lowest possible point. By focusing on driving down the experience modification factor, businesses know they are impacting their cost structures relative to their peers in a substantive way. This in turn gives them cost efficiencies that translate into higher profit margins, or more competitive bids. We did a very brief video on the subject called “5 Ways Your Experience Modification Factor Effects Your Business”.
The point is don’t just accept these rate increases as fate accompli, even if you are insured with The State Fund. There is a whole plethora of strategies you can implement that can give your business a solid competitive edge. While your competition is simply writing checks to their insurance carrier, be smart and talk with a Risk Advisor to help you take checks in from your competitors clients..
Photo by Dylan Gillis on Unsplash