insurance-salesMany business owners ask, “What drives the Workers’ Compensation machine and why are our costs so high?” We address some issues below that start to scratch the surface.

There were nearly 3 million nonfatal workplace injuries and illnesses reported by private industry employers in 2014 according to the Bureau of Labor Statistics. The highest incident rate across all industries were in Health care and social assistance, Manufacturing, Retail trade, Accommodation and food services, and Construction. Regardless of your industry type, most states require every business to carry Workers’ Compensation coverage.

Workers’ Compensation costs continue to rise across the United States with California being among one of the states most affected. Some of the rising costs could be contributed to outlying factors such as; the involvement of the political sector and the associated as well as certain aspects of the Affordable Care Act. Ongoing studies are analyzing the potential cost shifting effect of high-deductible health plans and Workers’ Compensation.

At The Armstrong Company Insurance Consultants we collaborate with our clients on a WC Cost Containment Study specific to their business. Our staff works closely with the insurance company’s loss control and claim departments to identify trends or areas that may be contributing each client’s particular losses. Implementation of loss control programs can have a positive influence on workers’ compensation claims. The results will have a clear impact on the workers’ compensation Experience Modification specific to your business and, if applicable, may reduce the amount of required collateral if you have a large deductible/self-retention workers’ compensation program.

We hope you have found this blog educational. At the Armstrong Timeshare Association we strive to keep you informed. To receive more information about our association or to request a topic of interest for us to blog, email:

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For more information on Workers’ Compensation Insurance, contact The Armstrong Company Insurance Consultants.

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