Delaware Business Insurance Update from CNC Insurance Associates Inc. "Delaware Work Comp Reducing Rates for 2015" 2-1-15

Small business owners guess what?  The Delaware Insurance Department has just approved a 11% reduction in work comp rates for 2015. Many of you reading this blog will be getting premium relief  for 2015. What does this mean for the future of the Delaware work comp market. Well lets hope we do not have a repeat of a few years ago. If you recall the work comp rates were rolled back and reduced dramatically on the back of Senate Bill 1 in 2007, which was betting on updated fee schedules to reduce work comp claim costs. Unfortunately this did not work too well and the State was forced to increase rates back up in order to preserve the insurance market. Not only did the rates go up but they went up so quickly that many small business owners were hit really hard with increased premium costs at a time when they could not afford it (during the Great Recession). Now this is round 2. The State legislature passed a law that will force medical costs down 30% over the next 3 years. On this "promise" from the legislature, the insurance department approved the reduced rates. So it is a nice premium relief now and hopefully the law will work. As I see it the work comp market is directly related to the medical community following the new law to reduce costs. Can anyone say deja vue?   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.bizinsurancetv.org

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