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Workers compensation insurance policy is mandatory for every business owner across the country. Even if you have only one or two employees, seasonal or part time workers, you are required by law to have workers` compensation insurance. In case you run your business without workers` compensation coverage, you risk to pay high amounts of money to cover medical and other expenses in case any of your employees is accidentally injured.

The insurance policy may save your business  especially now that the workers compensation rates are increasing. Compensation rates are determined according to about five hundred classifications with premium rates for each of them. What influences the premium rate for each classification is the possible risk that each type of work presents to the employees. One should check the classification and analyze with insurance agents the rate change dates which are updated several times a year. Although some business owners might find these rates already high, they continue to rise in the U.S. What affects the increase in workers` compensation rates in 2014?

  • Expiration of TRIPRA (Terrorism Risk Insurance Program Reauthorization Act) on December 31, 2014
  • Integrated Disability Management – business owners recognize that federal employment laws have a great impact on compensation rates in that these laws encourage disabled employees to get back to the workplace.
  • Passing and implementing laws that will in the future increase compensation rates in several states.  The states of Oklahoma, New York and California have already issued various regulations that will increase compensation rates and lower the assessment rate for employers.
  • Impact of the AHCA (Affordable Health Care Act) – this is only in the phase of speculations but the truth is that with a definite number of medical providers,  business owners have to choose the providers that offer the best medical support for the injured employees.

Most experts agree that certain increase in workers` compensation rates is to be expected in 2014 due to increases in disability benefits and the medical payment fee plan. Some predictions state that workers` compensation rates may increase to 10 percent with California being the only exception where the rates will increase up to twenty percent.  Employers can rely on credits and premium discounts to reduce the costs of compensation rates and if they develop risk management program they may expect  lower experience modification as well as lower premiums.

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