2007 Workers’ Compensation Insurance Rates Decline;Vermont Employers, Economy Will Benefit

Workers’ compensation insurance will cost less for most Vermont employers when new rates approved by the Vermont Department of Banking, Insurance, Securities and Health Care Administration become effective on April 1, 2007, announced Commissioner Paulette Thabault this week.

Effective April 1, 2007, a base figure known as “loss costs,” which is the primary component of workers’ compensation rates, will decrease by an average of 0.6% in the Voluntary Market. The Voluntary market – the open market offering the most favorable rates -- is where most Vermont employers purchase workers’ compensation insurance. In addition, workers’ compensation rates will decrease by an average of 7.9% in the Assigned Risk Market, the state-administered pool where employers unable to find coverage in the Voluntary Market must buy insurance. Due to overall losses, rates in the Assigned Risk market are usually higher than in the Voluntary Market.

Thabault noted that many of Vermont’s small businesses stand to benefit from the declining rates. “Small businesses are a vital sector of Vermont’s economy and this rate decrease will be good news for small employers -- especially those in the Assigned Risk Market who may see a significant reduction in their workers’ compensation costs,” Thabault said. Read more at bishca.state.vt.us.