(The Center Square) – Businesses should pay lower rates for workers’ compensation insurance for the third consecutive year, according to information from the Missouri Department of Commerce and Insurance.
Preliminary figures analyzed by the agency from the National Council on Compensation insurance show a proposed overall decrease of 7.5% for 2024 workers’ compensation loss costs. The decline was driven by 2023 information. Average annual medical costs and indemnity – the cost of losses – are analyzed per lost time on compensation claims.
Chlora Lindley-Myers, director of the Missouri Department of Commerce and Insurance, said business throughout the state should be pleased with the lower cost of workers’ compensation insurance.
“It’s a testament to Missouri’s employers for continuing to make safety improvements in the workplace to protect their teams,” Lindley-Myers said in a statement. “A robust market with over 300 insurers actively competing for business in the workers’ compensation market gives businesses plenty of choices. I encourage Missouri’s employers to take advantage of this and shop around for the best rates.”
Missouri performed an annual actuarial review of the National Council’s information and reported cost changes in the following industry groups:
manufacturing, -7.2%;contracting, -7.6%;office and clerical, -11.2%;goods and services, -7%;miscellaneous, -6.6%.
Hospital professional employees, electrical wiring within buildings, HVAC/refrigeration, clerical office employees, and salespersons or collectors all had 10% to 12.5% decreases in loss cost.
Plumbing industry and its drivers will increase 2.2%, according to the report.
Worker’s compensation is a “no-fault” insurance paying benefits to workers injured on the job and became law in 1925. The insurance covers medical care, lost wages and permanent disability. Employers, in return, receive immunity from civil lawsuits by employees over those workplace injuries.
Employers purchase workers’ compensation insurance to meet their legal obligation or they can be self-insured with state certification. The Department of Commerce and Insurance monitors market competition in the worker’s compensation sector and oversees various industry components to ensure fair rates and satisfactory service.