Pa. Cuts Workers' Comp Insurance Rates Today
HARRISBURG, Pa. -- Some businesses in Pennsylvania will see a decline in their workers' compensation insurance rates beginning today when a 5.15% rate reduction takes effect.
The Pennsylvania departments of Insurance and Labor & Industry estimate that qualified employers will experience combinned annual savings in workers' compensation insurance costs of approximately $140 million. This marks the third workers' compensation insurance decrease since 2012 with total savings approximately $410 million.
The rate reduction results from the Insurance Department's approval of the Pennsylvania Compensation Rating Bureau's annual loss cost filing. These loss costs are used to determine the levels of premiums businesses pay for workers' compensation insurance.
The premium savings for an individual employer will vary based on the employer's risk classification, claims experience and other factors. Not all employers will see a decrease.
Workers' compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages and death benefits for the dependents of those killed in work-related accidents. "We have spent the past several weeks celebrating the safe workplaces of Pennsylvania employers by presenting the Governor's Award for Safety Excellence to 10 employers across the state," said Julia Hearthway, Labor & Industry secretary, in a prepared statement. "It's clear that employer safety programs produce tangible benefits and cost savings."
More than 10,530 state-certified workplace safety committees have been established since March 1994 and they protect more than 1.4 million workers. Additionally, employers with certified workplace safety committees have saved nearly $524.3 million in workers' compensation premiums. These savings in insurance costs are entirely the result of the 5% premium discount provided to businesses that have these committees.
Published by The Business Journal, Youngstown, Ohio.
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