The Delaware Business Insurance Update From CNC Insurance Associates " Changes Are Happening in Work Comp" 5-27-16

In the early part of the 20th century the work comp system was started as the ultimate bargain between employees and employers. Employers would buy insurance to take care of injured workers and the workers would no longer have the right to sue their employers for thier injuries. This system has worked great for many, many years. However changes are starting to happen to the system as employers are looking to reduce the tremendous costs of work comp. Medical costs increases and litigation are driving the continual rise of work comp premiums. Employers are now looking to opt out of the work comp system to take control of these costs. Many states have statutes that allow this to occur. The risk to employers is that they no longer have the protection of not being sued by employees that the current work comp system gives them.  The risk to employees are they lose their protection of having a guaranteed mechanism to pay for their on the job injuries. It is going to be interesting to see how this manifests over the next decade. The grand bargain of the work comp system is changing because the costs to small business and big business is becoming too great. Until next time be careful out there and know your risks.

G. Kevin Nemith President of CNC Insurance & The Small Business Insurance Center
Serving DE, MD, VA, NJ and PA
www.cncinsurance.com
www.bizinsurancetv.org

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