Workers’ compensation is one of the many industries that has been greatly impacted by COVID-19. An influx of workplace illness claims and a decrease in on-the-job injury claims due to the stay-at-home ordnance is just one of the many changes within the system. The 2019 NCCI on the State of the Workers’ Compensation report documents how although there are less claims, medical costs are increasing which is resulting in continued increasing profits for workers’ compensation insurers. Although this increase has been present over the span of six years, the impact of coronavirus on industries is likely to spark changes to the system in the near future.
What Change?
COVID-19 has impacted the livelihoods of many individuals. In addition to threatening the health and safety of millions, many employees and companies are suffering from negative ripple effects of the virus. These include:
- High unemployment
- Decreased payroll
- Lower written premium and
- Lower returns on investments
This uncertainty following the pandemic could likely lead to insurers requiring a higher premium because of an increased cost to cover potential losses. Although this is what insurers will seek in the coming years, reform is potentially on the horizon to decrease exorbitant costs associated with employers obtaining workers’ comp coverage for their employees. It is an interesting time in the workers’ compensation industry and the system will likely not look the same in two years as it does now.
Impact on Workers
As an employee, you may be wondering how this could affect you moving forward. If you suffer from a workplace injury or illness, your employer is still expected to have workers’ compensation insurance to cover your claim, regardless of the potential increase in premiums. If you are concerned about your workplace’s workers’ compensation policy and have been injured and would like to file a claim, Poirier Law Firm is here to help. Contact us at any time to learn how to best protect yourself as an employee or to seek compensation for an injury.
Source: https://www.ncci.com/LearningCenter/Pages/LC_Webinar_SOTLPresentation-2019.aspx