Continued Decline for Alaska Workers Compensation Rates in 2019
Alaska Workers Compensation Rates 2019 are going to fall more than at any time in nearly 40 years. Announced by Governor Bill Walker during the first half of October, workers compensation rates will be declining by 17.5 percent on average. This decrease is in addition to a decline of 5.4 percent in 2018. Since 2015, rates have fallen by approximately 25 percent. According to the Alaska Labor Commissioner Heidi Drygas, “This would be the biggest year-to-year decrease in workers’ compensation rates in 40 years. The department worked tirelessly to reform the workers’ compensation system to increase efficiency and lower medical costs, both major factors in premiums.”
Alaska Workers Compensation Rates 2019
Alaska Workers Compensation Rates 2019 are improving as a result of a number of factors. Primarily they are declining because of declining claim frequency and favorable medical costs. In a statement from Governor Bill Walker while speaking in front of the Department of Labor and Workforce Development Walker said, “Thank you to the Alaska State Legislature and the Department of Labor and Workforce Development for their work on payment reform, contributing to significant rate reductions for 2019.”
What can business owners do to Maximize Alaska Workers Compensation Rates 2019?
There are multiple ways a business owners in Alaska can maximize savings on commercial insurance. Especially when it comes to workers compensation. Here is a list of 5 factors a business leader should consider when purchasing workers compensation and other lines of commercial insurance.
Ensure Proper Classification for Workers Comp
Many businesses have employees who are incorrectly classified for purposes of workers compensation. This can change drastically what a business pays for workers comp coverage. These problems typically get cleared up during a post term audit, but at that time the business has to either pay additional premium or they get a credit from over paying. Even if the business gets a credit, it means the business has had cash unnecessarily tied up in insurance premiums throughout the year.
Install an Effective Safety Program
Safety Programs are the single most influential way a business can control what they pay for all lines of commercial insurance. If installed correctly, a safety program can lower the experience modification rating of the business. This is the single greatest factor an underwriter looks at when deciding to offer coverage to your business and how much to charge for that premium.
Make sure a Return-to-Work Program is included the Safety Program
Included in your safety program should be a return-to-work program that effectively gets injured employees back on the job, even in a limited capacity. The quicker an employee gets back on the job, the more likely they are to return to permanent work. This can help limit the damage to the businesses experience modification rating.
Choose the Pay-as-You-Go Option
Pay as You Go Workers Compensation Insurance is a fairly new program designed to help some businesses get coverage in place quickly and pay insurance premium each month based on the real time payroll from the previous month. With a traditional workers comp policy, premium is paid based upon an estimate of the premium years payroll over 1-3 years. If you operate in an industry that has drastically different payroll from year to year, the pay as you go option may be a great option for your business.
Use an Independent Agent to Purchase Coverage
Independent agents have the ability to quote your coverage out to a number of insurance carriers as opposed to one carrier or a select few. Independent agents also have the insight to know which carriers are actively looking to quote your industry or the coverage you are looking to acquire. This can save your business time and money when looking to quote coverage. It also can get you a more comprehensive insurance package and prevent gaps in coverage.