Delaware Business Insurance Update from CNC Insurance Associates Inc. "Work Comp Rates To Go Up 14%" 2-23-14

It was recently announced that the DCRB and the Insurance Department of Delaware have reached an agreement on the increase in Delaware work comp rates. It looks like 14% is the new number for 2014. Business owners may feel somewhat relieved as it was discussed that the rates should go up 40% or more. However 14% is nothing to sneeze at, as most business owners will still have a tough time paying for the increase in a lagging Delaware economy. The work comp rate making game has become an event most Delaware business owners have come to expect. Each year DCRB gives a suggested loss cost rate increase and the Insurance Department pushes back. Sometime after the start of the new year new rate structures are approved. What is problematic with this system is the affect it has on small business and the Delaware economy. Business owners have a hard time planning their budgets for the new year as work comp is a big number on their income statements and has to be factored in. Most of my clients hold back on hiring new employees or buying new equipment until they know the cost of their work comp premiums. Over the last few years as rates have sky rocketed, many businesses are not hiring or buying at all. The cause of increased work comp rates is the subject of another blog post, but one thing is for certain, as rates go up, business growth is negatively affected. This is not a good scenario for the Delaware economy. Until next time be careful out there and know your risks.

G. Kevin Nemith, President ,CNC Insurance Associates Inc & The Small Business Insurance Center
Serving DE,MD,VA,NJ, & PA
www.cncinsurance.com
www.bizinsuranctv.org

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