In the business world, companies continually deal with the rising costs of goods and services that must be addressed to keep their businesses functioning successfully. Another area companies must deal with is rising workers comp premium rates.
What is Causing Rising Workers Comp Premium Rates?
This is a valid question that may be a concern to you as an employer. The following list includes a few of the reasons workers comp premiums are on the rise in your business.
- As insurance companies make changes to their rates, often it is like a juggling act where one classification code is lowered while another, more popular classification, is increased.
- Businesses that change from one type of service to something different may encounter a higher rate due to the classification codes used for that particular business.
- A change in the number of persons on the payroll triggers an increase in workers comp premiums.
- When a reassignment of an employee's payroll to a classification code with a higher rate, this will increase the premium.
- The cost of medical care and services directly affect increases in workers comp premium rates. The cost for the treatments and procedures administered by a medical facility along with wages paid to the injured employee are factors in increased rates.
Whether your company is experiencing a current or continual rise in rates can be a combination of one or more factors at any given time. These include businesses changing to a different type of business, payroll changes, and classification codes, along with profit margins for the insurance company, lost wages paid, and medical costs.
For help with workers comp issues, contact Minnesota Comp Advisor, today.