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Workers Compensation Claims- The Ripple Affect

Workers compensation insurance is necessary to ensure workers have the coverage needed should they become injured on the job. When a workplace accident occurs, the injured worker should be entitled to compensation covering lost wages or medical expenses. In an ideal world this process would be a simple one, however this is not always the case. The workers compensation system involves many parties who must work together in order for the system to work. When there is a problem in one area, it causes a ripple affect which is felt by everyone.

The folks in Southampton, NY experienced this first hand after a recent increase in the town’s workers compensation insurance premium. The increase exceeds the budgeted amount by a whooping $600,000. When the town’s workers compensation policy was up for renewal the previous fixed rate of $1.2 million jumped to $2.1 million. This came as quite a shock considering the number of workers compensation claims have been on a steady decline in recent years.

The situation in Southampton is just one example of how different areas of the workers compensation system impact entire communities. Here an entire town is affected by workers compensation claims and insurance. Despite the drop in claims filed, the rate increase reflects a five year period when the number of workers compensation claims were significantly higher.

We could speculate that in a situation similar to the one in Southampton, a town may have to raise taxes to offset such a huge spike in insurance premiums. It is also possible that employers would want to limit the number of workers compensation claims filed. Workplace accidents could go unreported if injured workers are worried about losing their job. When you look at the big picture it becomes obvious that workers compensation issues affect all of us. This is also why anyone with questions or concerns regarding a workers compensation claim should contact an experienced workers compensation attorney for more information.