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Workers Compensation rates will drop again this spring in Tennessee


Workers Compensation rates will drop again this spring in Tennessee

ABOVE: A banner on fence Nov. 5 at the Harpeth Square development fence in Franklin zero accidents on the work site. // KELLY GILFILLAN

 

TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE

Workers’ compensation insurance premiums will decrease for the sixth consecutive year to a record low in Tennessee, according to an announcement on Monday from Gov. Bill Haslam and Tennessee Department of Commerce and Insurance Commissioner Julie Mix McPeak.

“Our workers compensation reform has been a significant step toward improving the business climate in Tennessee and growing jobs,” Haslam said. “Our reforms brought clarity and fairness to the system and continue to benefit our state.”

The Haslam administration led reforms of Tennessee’s workers’ compensation system in 2013 that improved the state’s compensation system. Since then, loss cost reductions of over 48 percent have been approved, representing substantial savings for Tennessee employers. The reduced rates are also impacted by Tennessee employers seeing fewer significant workplace injuries.

TDCI Commissioner Julie Mix McPeak recently approved a 19 percent filing for 2019 on Oct. 31, 2018. The National Council on Compensation Insurance (NCCI) presented the 19 percent filing to the Advisory Council on Workers’ Compensation earlier this year.

“This is more positive economic news for Tennessee and our workforce,” McPeak said. “These reductions mean Tennessee employers will have more money to invest into their businesses and employees, which will in turn benefit our local communities. Tennessee’s workforce will also benefit from these loss cost reductions because they are the result of decreases in lost-time claim frequency and more stable claims costs.”

This latest reduction will become effective March 1, 2019. Previous reductions of 12.6 percent and 12.8 percent were approved with March 1, 2018, and March 1, 2017, effective dates, respectively.

Insurance carriers combine NCCI’s loss cost filings with company experience and expenses to develop full insurance rates.

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