Delaware Business Insurance Update by CNC Insurance Associates Inc. "Delaware Work Comp Rates to Fall?" 10-19-14

The Delaware Compensation Rating Bureau has announced that it is requesting roughly a 1.5% rate decrease for work comp rates in 2015. This comes off the heals of consecutive rate increases over the last three years. The Bureau is hoping that the legislative changes put in place over the summer will start to have an impact on high medical costs that have been driving the increases. This is a risky move however. If the medical cost containment does not work, then expect a slingshot reversal of rates sometime in 2016 or 2017.  The DCRB states in their filing that the rates really should be 25% increased in 2015 ! However they believe the cost containment measures will work and that is the reason they are requesting the small decrease. Small business owners need to keep an eye on this as successful cost containment means decreasing rates over the next few but failure of the legislative initiatives could mean big time work comp rate increases a few years from now.  Until next time be careful out there and know  your risks.

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

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