Delaware Business Insurance Update from CNC Insurance

I just saw a Delaware Comp Bureau circular where they are asking the state insurance department to approve a 43 percent rate increase next year. The circular states that this increase is needed because of the hyper reduction of rates that has occurred over the last four years. We saw this coming. I even did a few blog post regarding this. The reduction of work comp rates the last few years was unsustainable. Losses are increasing as more and more employees are going back to work, and frankly there is not enough premium to support a profitable business model for insurance companies. If the rate increase is not granted, many insurance companies will find themselves on the losing side of profit. This will add instability to the Delaware work comp insurance marketplace. On the other side of this are business owners who are still having a tough time from the recession and now will have to deal with work comp increases they will hardy be able to afford. This size of increase could put some businesses out of business. I guess it remains to be seen how this will play out. Until next time be careful out there and know your risks.
Blog by G Kevin Nemith President of CNC Insurance, business insurance, small business, and risk management specialists serving Delaware, Maryland, New Jersey, and Pennsylvania





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