Pa. businesses look for lower premiums with loss-costs filing

Pennsylvania businesses may be gaining lower premiums.

The Shapiro Administration approved Wednesday filing with 8.67% reduction in workers’ compensation insurance costs for Pennsylvania businesses. This year’s filing could result in lower premiums.

The Pennsylvania Insurance Department (PID) and the Department of Labor & Industry (L&I) announced that PID approved a loss-cost filing that includes a reduction in the expected costs of paying claims known as “loss costs.” As these costs help determine workers’ compensation insurance rates paid by businesses, this reduction will likely lead to lower premiums for many Pennsylvania businesses.

“Today’s reduction in workers’ compensation loss costs is a positive step forward in supporting both Pennsylvania’s workforce and its businesses,” L&I Secretary Nancy Walker said in a statement. “By lowering premiums, we’re ensuring that employers can continue to afford the critical coverage their employees rely on in the event of a workplace injury, while also providing workers with the protection they deserve.

“This collaborative effort underscores our commitment to creating a balanced and sustainable workers’ compensation system that benefits all Pennsylvanians. We remain dedicated to enhancing workplace safety and providing the resources employers need to keep their employees safe,” added Walker.

According to a release, this loss-cost revision was filed by the Pennsylvania Compensation Rating Bureau, an independent bureau that makes filings to PID on behalf of companies that write workers’ compensation insurance in Pennsylvania. Workers’ compensation insurance covers the cost of medical care and rehabilitation for injured workers, lost wages, and death benefits for the dependents of those killed in work-related accidents.

Workers’ compensation insurance coverage is offered in Pennsylvania by approximately 370 insurance companies. The loss-cost filing premium savings for an individual employer will vary based on the employer’s risk classification, claims experience, and other factors.

Companies that save on workers’ compensation insurance premiums can use that money to buy new equipment, hire more workers, and expand their businesses. This year’s loss cost filing goes into effect April 1. New or renewed policies issued on or after April 1 will be subject to the new loss costs.

“A competitive workers’ compensation market is beneficial to both workers and businesses,” said PID Commissioner Michael Humphreys. “This ensures Pennsylvania businesses have the tools they need to provide the necessary coverage workers rely on in the event of a work-related accident, and it also reassures hard-working Pennsylvanians that they’re protected when the unexpected happens.

“Our department will continue to work toward further reductions in years to come in order to lower costs for Pennsylvanians,” said Humphreys.