With January 1 right around the corner, many business owners are anticipating the impending changes for workers compensation rates, rules, and regulations in MO. Insurance is a major concern for business owners as it is a critical portion of their annual overhead and operating costs.
To prepare yourself for the upcoming year, I want to point out to employers some of the most important changes you will be seeing and what that direct impact will have on your bottom line.
Missouri Second Injury Fund Surcharge:
This surcharge was founded on great principals to promote the hiring of disabled American veterans from World War II. The idea behind this surcharge was that a small percentage of the estimated annual premium would be paid into this fund to help an injured worker when a new injury combines with a prior injury that results in a larger overall disability.
Unfortunately, the 3% that was collected by this fund has proven to not be enough to collect and the SIF is bankrupt. What this means is that, in 2014, the fund will double its surcharge from 3% up to 6%. This will affect not only business owners, but also consumers as well.
Missouri Workers Compensation Rates:
The National Council for Compensation Insurance has also recommended that Missouri take an approximate 11% increase in the rates for the coverage across the board as well. With the skyrocketing cost of insurance, this is the only way to provide adequate premium to cover potential claims. This increase is considered to be an average increase. So, although some may see an increase, others could see a decrease in their overall costs.
If there is a bright side to this information, it is that as consumers, we can all do our due diligence to shop the comp market in order to see what carriers are able to offer in terms of rates and credits. Not all carriers will be taking the same increase in rates recommended by NCCI.
The only way that a business owner will know for sure if they are getting the best price for their workers comp in Missouri is to shop for the coverage! Fortunately, The Insurance Shop has multiple markets here in Missouri that we can look toward for competitive pricing. So, if your current agent tells you that he is presenting your renewal coverage with the best price, remember, that could only be the best price that they are able to offer.
In order to plan for this, what you need to do is to request a copy of your “currently valued loss runs” from your current and prior carriers, ask for a copy of your “experience modification worksheet” and give our agency a call.
We are located in Columbia, Missouri and ready to help you in the best way possible. Helping you keep more of your hard earned money as profits!
