PA | Today, Pennsylvania Acting Insurance Commissioner Michael Humphreys and Labor & Industry Acting Secretary Nancy Walker announced approval of a loss-cost filing, including a 3.33 percent reduction in loss costs. Loss-costs are a component in determining workers’ comp insurance rates paid by businesses, and this reduction should lead to lower premiums for many Pennsylvania businesses.
“Under Governor Shapiro’s leadership, we are working to maintain a healthy and competitive workers’ compensation insurance market, which will help keep costs down for Pennsylvania businesses,” said Humphreys. “More companies are offering workers’ compensation coverage in the commonwealth, and employers have more options for this vital insurance. This latest filing follows several years of reductions, further helping business owners create good-paying jobs in Pennsylvania.”
This loss-cost revision was filed by the Pennsylvania Compensation Rating Bureau (PCRB), an independent bureau that makes filings to the Insurance Department on behalf of companies that write workers’ compensation insurance in Pennsylvania. 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.
Approximately 360 insurance companies offer workers’ compensation insurance coverage in Pennsylvania. The loss-cost filing premium savings for an individual employer will vary based on the employer’s risk classification, claims experience and other factors. Humphreys noted that not all employers will see a decrease in premiums from this reduction.
Acting Department of Labor & Industry Secretary Nancy Walker explained that seven straight years of loss-cost reductions have benefitted Pennsylvania businesses and workers through increased safety efforts and injury reductions. Walker said certified workplace safety committees, overseen by her department, are key for both cost reduction and increased safety awareness.
“Workplace safety committees bring together employers and employees for the shared goal of improving workplace health and safety of all,” Walker said. “These committees are so effective at reducing costs that an additional five percent discount on workers’ comp insurance premiums is granted to the companies that certify their committees.”
More than 13,000 state-certified workplace safety committees have been established since March 1994, protecting more than 1.6 million workers. Additionally, employers with certified workplace safety committees have saved more than $875.9 million in workers’ compensation premiums. These savings in insurance costs are due solely to the five percent premium discount provided to businesses that have these committees.
Walker added her department’s Bureau of Workers’ Compensation Health & Safety Division provides employers with the most up-to-date and relevant safety training and information possible for employees through the department’s Pennsylvania Training for Health and Safety (PATHS) initiativeOpens In A New Window. Employers should contact their insurance company or agent for more information about how their workers’ compensation premiums could be affected.
For more information, employers are also encouraged to attend the 22nd Annual Workers’ Compensation ConferenceOpens In A New Window to be held June 1 and 2 at the Hershey Lodge and Convention Center.
More information on Pennsylvania insurance products is available at www.insurance.pa.govOpens In A New Window.
More information on Bureau of Workers’ Compensation, Pennsylvania Training for Health and Safety (PATHS) free workplace safety and Health training is available at www.dli.pa.gov/pathsOpens In A New Window.