A (minus) -4.2 percent overall rate decrease to Idaho workers’ compensation insurance was approved effective January 1, 2019 by the Idaho Department of Insurance.
Employers should see this rate relief in 2019 on the annual renewal date of their policy. The actual rates will vary based on the payroll class codes applicable to that particular business. Other rating factors may affect the final renewal estimated premium like the experience modification factor, which is based on past claims, and any changes in estimated payroll for the new policy term.
This 2019 rate decrease follows a similar decrease of 3.4 in rates on May 31, 2018. The new rate change comes from the National Council on Compensation Insurance (NCIC). NCCI annually collects information about Idaho’s workers’ compensation system and submits proposed rates to the Department of Insurance for review and approval. Once adopted, the workers’ compensation insurance rates are used in Idaho by all insurance companies and the State Insurance Fund.
“We are pleased to announce this reduction, a move which will benefit Idaho businesses, their employees and the economy in general,” said Idaho Department of Insurance Director Dean Cameron. “The change in the 2019 workers’ compensation rates reflects an improvement in our state rating factors, including a slight decline in both the frequency of claims for lost work time, and the average cost of those claims.”
Idaho employers are required to maintain statutory workers’ compensation insurance coverage for the benefit of their employees and uninsured independent contractors. The state’s workers’ compensation benefit system is designed to cover medical costs associated with workplace injuries. It also provides wage replacement benefits to injured workers for lost work time.
Source: Idaho Department of Insurance News Release, Workers’ Compensation Rates to Decrease in Idaho for 2019
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