PA Insurance Rates Cause A Business To Close

Out of Business

Out of Business

Post Date August 11, 2012 – Gavlick Personnel Services, a staffing firm which is based in Kingston, Pennsylvania which also maintains a satellite office in Hazleton, abruptly closed it’s doors in May 2012. The firm which was owned by Norman and Angela Gavlick was in business for nearly 20 years.  Mr. & Mrs. Gavlick was known as an advocate for the unemployed and helped those out of work to find jobs. According to Norm Gavlick, President of the firm was quoted as saying ” we were forced to cease operations when the business was no longer profitable due to the high cost of PA insurance Rates both Workers Compensation and unemployment”  “We can’t afford to operate any more. “We can’t make any profits”‘;  said Gavlick. He further disclosed that businesses such as theirs pay higher base PA Insurance rates on worker’s compensation than any other type of business in Pennsylvania.

PA Insurance Rates are on the rise

Over the last three years, the cost for PA Insurance Rates on workers’ compensation has doubled. To add to the burden, PA Insurance Rates on unemployment tax rate increases every year. Even auto insurance rates are on the rise.

The Gavlick staffing firm was providing employment opportunities for around 150 people. Now that it ceased its operations, those people are now being backed by different agencies. With its closure, six Gavlick employees lost their jobs including their vice president for sales, Luke Matthews, whose wife had recently gave birth to their sixth child.

Workers compensation and auto insurance rates are not the only cause of pain to Pennsylvania Employers.  Over the last few years, the cost of Health Insurance has increased by 100% in some cases. Since the passing of the Obama Care Bill, Health Insurance Companies have used the uncertainty of the new marketplace to increase premiums to an unaffordable level.


Michael E. Dortch
President &  Managing Agent
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602