Risk & Business

The Delaware Legislature voted to reduce medical reimbursements on work comp claims. This is an attempt to reduce Delaware work com rates which pointed to medical costs as the reason for the rate increases over the last few years. The reductions will be phased in over the next 3 years and will be up to 30%.  A Delaware task force brought to the legislature findings of their study on rising work comp rates and doubled down on medical costs as the reason.  The question now is how will the medical community react to this new law ? Will this really reduce comp rates over the next few years? Only time will tell.  We will revisit this again real soon. Until next time be careful out there and know your risks. G. Kevin Nemith President CNC Ins. Associates Inc. and the Small Business Insurance Center Serving DE,MD, VA,NJ, & VA www.cncinsurance.com www.bizinsurancetv.org

Based on a recent report, 3.7% of construction workers will get injured on the job this year. Take into the fact that the average work comp claim in construction usually tops over $10,000, and you can understand why work comp is a cost driver. The direct cost of workmans comp insurance continues to rise. In most construction trades work comp premiums can be 40% or more of the total commercial premium in a 12 month policy period. The only way to reduce these costs is in safety practices. Companies that avoid injuries pay less in work comp premiums hands down. Safety practices and safety equipment may be expensive and time consuming but the payoff is big. Not only do employees have a safer work environment, but the competitiveness of the company that avoids injuries is enhanced.  There is one word in work comp cost reduction that every construction company needs to know and that word is "Safety". Those that avoid injuries pay less, period!! Until next time be careful out there

I always take the time each spring season to remind clients and business owners to get prepared for the upcoming storm season.  Though the hurricane prognosticators are announcing less activity this year, a few could be major. So take the time and review your properties and assets and make sure your insurance coverages are up to date. Also have a business interruption plan in case you are down a few days or weeks.  Small preparation today will could help enormously if you are damaged by a summer storm. Until next time be careful out there and know your risks G.Kevin Nemith President, CNC Insurance Assoc. & The Small Business Insurance Center Serving DE, MD, VA, NJ, & PA www.cncinsurance.com www.bizinsurancetv.org