In the end, we’re seeing higher unemployment with diminished revenue and payrolls, but employer Workers Comp fees and charges are continually going up – which is the antithesis of what normally occurs. Payrolls have also decreased because of a fluctuating economic landscape, forcing many employers to perhaps lay off workers, cut back on salaries, and put a freeze on new hires. The net result is that businesses are paying more in premiums even though their revenues may be flat or down. A hard market occurs when rates across the board in all coverage lines (some more than others) begin to firm and underwriting criteria becomes more stringent. The increase in premiums is due to a number of reasons, including a rise in claims frequency diminished underwriting profitability over a number of years for insurers who are now looking for a way to balance rates with loss payouts and the subsequent start of what is called a “hard market” in the insurance industry. These changes are affecting employers like yourself in increased premiums and difficulty in getting coverage in standard markets. Over the past several years, throughout the country we’re seeing significant changes in the Workers Compensation market. Get a Grip on Workers Comp Rates in a Market Seeing Premiums Increase
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