Rates for workers compensation insurance have historically been high. According to the 2018 Oregon Workers’ Compensation Premium Rate Ranking Summary, rates for in the state of New York are the most expensive in the country. These rates average 188 percent more than the national average. The Oregon Workers Compensation Premium Rate Ranking Summary comes out every two years and is the most comprehensive study that analyzes workers compensation premium. In 2019, the New York Compensation Insurance Rating Board recommended a 11.7 percent reduction in loss cost rates. These reductions went in to effect on October first of 2018.
Why are New York Rates Declining in 2019?
New York Workers Compensation Rates 2019 are seeing a decline, but in reality they could not have gotten much more expensive. As of 2018 the rates were 188 percent the national average. One of the main reasons for this decline was that in 2017 there were reforms to the workers compensation system put in place that capped classification of Maximum Medical Improvement. This reigned in the high costs associated with delays in finalizing claims. Faster processing of claims allows everyone within the system to benefit and some of those savings are passed on to the business community in the form of lower workers comp premium.
Ways to Maximize Savings in 2019
Partner with an Independent Agent
Partnering with an independent insurance agent allows a business to get unbiased advice about the policy they are buying, the package of policies they are buying, the carrier they are buying them from, and what policies they may not need. A captive agent cannot be as honest with you about all the options at your disposal. This is because they sell the products of one carrier where an independent agent partners with many carriers. They can tell you what you may like and dislike about partnering with any particular carrier. A captive agent will only tell you the positives of their particular carrier.
Shop Around Your Policy
While it is not a good idea to switch carriers every year based upon a slight decline in price. It is wise to shop around periodically. If for no other reason than to make sure your current carrier is competitive with the current marketplace.
Implement a Safety Program
Implementing a safety program is one of the best actions a business owner can take to decrease the frequency and severity of claims within the workers compensation system. In the long run this will lower the businesses experience modification rating which is the main factor an underwriter looks at when determining what to charge a business for workers compensation insurance premium.
Bundling all policies together is an additional way to save on insurance premium. When you bundle all policies together you will prevent a gap in coverage. Also, underwriters are more aggressive with credits and discounts when they know they are getting more of your business. Your independent insurance agent can use this to get your business more comprehensive coverage at lower rates.