Pennsylvania Businesses Receive a Reduction in Insurance Premiums

Governor Wolf announced this week that Pennsylvania businesses will see a significant cut in workers' compensation insurance rates while benefit levels for injured workers will be maintained.

Workers' comp insurance rates will drop 5.99 percent, effective April 1, reducing a key expense for many companies and saving Pennsylvania businesses an estimated $140 million this year. "A constant concern for business owners is reducing costs while supporting employees' health and livelihood," said Governor Wolf. "These rate reductions will go a long way towards ensuring business owners can continue to create and support jobs that pay in Pennsylvania."

The rate reduction follows the Insurance Department's approval of the Pennsylvania Compensation Rating Bureau's annual loss cost filing. These loss costs are used to determine the premiums businesses pay for workers' compensation insurance. The premium savings for an individual employer will vary based on the employer's risk classification, claims experience and other factors. Not all employers will see a decrease. This is the fourth consecutive workers' compensation insurance cut in as many years, and brings the cumulative savings to $550 million for the past four years. 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.

So, some questions:

  1. Are your rates eligible for the discount?
  2. Do you know how to apply and get this discount?
  3. Did you know that if you get your active safety committee certified through the state L&I you can save 5% every year going forward in your rates?
  4. Did you know that ZEE Medical Reading is a certified facilitator in this program? (We can help)

Where else can your business save money? How about in the area of reduced injuries, proper PPE (surveys show that proper PPE can reduce your cost of PPE by some 20%, or put it another way, a reported savings of $3 in workers’ compensation costs can be expected for every $1 spent on PPE).

Call us at 800-355-8267 or email us todayfor more information.

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