Michigan Businesses to Pay Less for Worker’s Comp Insurance
As the owner and managing agent of InsureDirect.com for the last 20 years, I can certainly tell you Worker’s Compensation Insurance and its monthly payment is an expense I wish could be alot less. InsureDirect.com like other Auto Insurance Companies and general business through out the United States must defray this insurance expense when you use any staff.
Business owners in the state of Michigan now have every reason to smile starting from August 4th they will pay about 8% percent less in pure premium advisory rates for workers’ insurance. The announcement was made by Steven H. Hilfinger, the director of the Department of Licensing and Regulatory Affairs (LARA). The decision to cut the rates came on the back of declining number of claims in Michigan, and it is thought the move will ultimately benefit not only the business community but also their employees and those seeking employment. When a business has more money to spend, employees will always benefit.
Hilfinger said, “The decline in the state’s pure premium rate for worker’s compensation is great news for Michigan employers and ultimately employees and job seekers.” He further added, “We are working very hard to create a positive environment for creating business in Michigan.”
LARA has over the years been at the forefront in the field of regulation and licensing with the hopes of enriching the lives of Michigan residents with their insurance slogan: “Customer Driven, Business Minded.” Kevin Elsenheimer, the director of Workers’ Compensation Agency, attributed the decrease in the rates to enhanced workplace safety measures which have resulted in fewer workplace related injuries and consequently fewer claims being made. He also cited efficient management of the medical costs resulting from these injuries through a fees schedule as another reason that led to the reduction. The fee schedule is revised every year by The Workers’ Compensation Agency, a department of the Michigan Department of Licensing & Regulatory Affairs (LARA). LARA is leading from the front by creating customer and business friendly regulations and licensing policies.
Director Elsenheimer said, “Our worker’s compensation program is doing an effective job of cost containment,” He further stated “Reducing workers’ compensation rates helps businesses cut their operating costs, making it easier to do business in our state and potentially lead to economic growth and creating jobs for Michigan workers.”
The lower rates were given a thumps up by the state’s quasi-public Data Collection Agency Board on July 27, 2011 and will become active from the first day of 2012. Private insurance firms use this annual results to adjust their worker’s compensation coverage accordingly. The pure premium rates are worked out from historical loss data provided by the insurance carriers for each job group. Data analysts then analyze the data to find out how legislations and court rulings are bound to affect the numbers year-to-year.