CNC Insurance Delaware Business Insurance Update: Work Comp Rate Hike Decision Looming

From the day it was announced that Delaware Compensation Rating Bureau wants to raise comp rates 40%, my cell phone has been buzzing like crazy. Most of the calls have been from clients worried about the looming increase in work comp costs. Delaware business owners, still struggling from a weakened economy, will most likely hire less and may even lay off to cover the costs. So with the state hearing scheduled for Dec 20th, the new year could open with sticker shock for Delaware business owners and their insurance costs. There is another issue that has to be considered in this situation and that is economic development. If the state implements some of the highest work comp rates in the country, I doubt new businesses will want to start up and grow here. A work comp rate hike of this magnitude could be a blanket over future economic growth over the next few years. I am sure this will be discussed at the hearing and put into the equation for decision making. Stay tuned and as always know your risks. K
Blog by G. Kevin Nemith. Business Insurance, Small Business Insurance, Enterprise Risk, specialist serving DE, PA, NJ, & MD.
www.cncinsurance.com
www.bizinsurancetv.org

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