Vermont: State cuts WC loss costs for fourth consecutive year
Gov. Jim Douglas recently announced that the Department of Banking, Insurance, Securities and Health Care Administration approved the reduction in loss costs. In the voluntary market, loss costs -- the primary component of workers' comp rates -- will decrease by an average of 4.1 percent. More than 93 percent of Vermont employers receive voluntary market coverage. In the assigned risk category for employers unable to obtain coverage in the voluntary market, rates will decrease by an average of 2.9 percent.
"This is excellent news, especially for the many Vermont small businesses that will benefit from this decrease," Douglas said. "Four consecutive years of decreased rates would not be possible without employers' continued attention to the issue of workplace safety and the work of state regulators who successfully maintain a positive business environment for insurers."
Paulette J. Thabault, commissioner of the BISHCA, echoed the governor's comments.
"The health of Vermont's workers' compensation market has clearly improved over the past several years, as reflected in these lower rates and the declining number of employers in the assigned risk market," she said. "It is also important to recognize that businesses across Vermont have worked hard to create a culture of safety at their workplaces, and the reduced costs that many employers will experience with this rate decrease are a direct result of their efforts."
Thabault said that two iconic Vermont industries -- dairy farms and ski areas -- will see significant average loss cost reductions of 18.9 percent and 12.9 percent respectively.
Read more at the WORKERSCOMP ForumTM homepage.
April 5, 2010
Copyright 2010© LRP Publications