Claims matter in a hardening workers’ compensation insurance market
Samuel Hale, LLC is poised to help California employers with the anticipated increasing cost of workers’ compensation insurance resulting from the COVID-19 crisis.
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The pandemic has resulted in unprecedented layoffs as states institute shelter-in-place orders. The economic decimation may soon result in yet another fallout as workers’ compensation carriers may soon start raising rates dramatically. This could end our unusually long soft market.
“Soft markets are great for businesses because rates go down every year regardless of loss experience. Unfortunately, this can cause employers to become lax in their efforts to reduce claims. For example, even an employer with a 200 ex-mod may see aggressive rates and unwarranted discounts in a soft market. Unfortunately, when the market hardens, employers with high ex-mods could see their premium costs triple at renewal,” explains Samuel Hale CEO and founder, Michael A. DiManno.
In addition, employers are worried about COVID-19 workers’ compensation claims. Virus-related claims have traditionally been non-compensable; however, government pressure is forcing carriers to take another look. Even if carriers deny these claims, California attorneys will likely appeal at the WCAB where claims can be kept open for years.
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Fortunately, there is a solution available to employers of all sizes.
Samuel Hale’s “Patriot” program allows clients to benefit from Alternative Dispute Resolution (ADR) to handle claims outside of the Workers’ Compensation Appeals Board (WCAB) quickly without the need for attorneys. ADR combats fraud and excessive litigation allowing for claims to close quickly. ADR can only be done through a carve-out agreement approved by the California Division of Workers’ Compensation. Samuel Hale has been approved since 2016.
“There’s a lot of fear right now and businesses are looking for some good news,” says DiManno. “For companies that depend on controlling workers’ compensation costs to stay in business, we provide protection and stability.”
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