Workers' comp costs weaken companies

The Sacramento Business Journal ^ | Oct 2, 2002 | Bizjournals . com

[Ernest_at_the_Beach]

Businesses are feeling the pain of skyrocketing workers' compensation premiums. Some are hollering pretty loud about it, too.

In Washington state, firms are protesting a proposal by the state Department of Labor and Industries to increase industrial insurance premiums by 40.5 percent. "It's a pretty big hit," says a business community lobbyist.

In California, some companies have seen premiums jump by 80 percent, leaving some wondering whether they can continue to stay in business. Similar cries of pain are being heard from Florida area construction contractors. And bulging workers' compensation costs are cited by some as a major contributor in the collapse of trucking giant Consolidated Freightways.

•	Sacramento: Workers' comp misery spreads
•	Seattle: A workers-comp whammy
•	Orlando: Builders target insurance rule
•	Portland: Insurance woes may have pushed CF over the edge

[Mo1]

WIPE THE SMILE OFF OF THIS MAN'S FACE.

VOTE THE RATS OUT!!

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[American in Israel]

Ask your personal director at work just how much they are forced to send the feds and the state. When I asked years ago they said they send almost matching funds, about a buck for every buck on my check. That ammounts to a 50% government tax rate BEFORE I pay my taxes on the part I get. Over all Americans are paying anywhere from 75% to 95% taxes now.

[bigeasy_70118]

Let's begin bashing the trial lawyers for this. Most Worker's Comp attorney's fees are capped at 20-25%. Any PI lawyer worth his salt refuses to take these cases because the risk/reward ratio just isn't there on worker's comp. Further, as most conservatives on this board love, the claimant never recieves a dime for pain and suffering.

The insurance industry is absolutely responsible for this mess. They fail to put enough in reserves and then contest treatment and never ever care if the claimant returns to work, which is supposed to be the goal of the worker's comp process. Thus increasing the costs b/c the worker is never completely healed and frequently misses work due to accident concerns.

[Mad_Tom_Rackham]

Bump for later. FReegards!

[CDHart]

Much of what is driving the premiums higher is fraudulent claims. Those ads on the TV asking "have you been injured at work, etc." make it easy to do that.

Carolyn

[anu_shr]

Very naturally jobs will shift to India - specially jobs which provide mass employment such as customer support via email or voice. Low wages , English language and an educated but hungry population. A docile Indian is any employer's dream come true. Manufacturing is already in China.

[Dasaji]

And let's not forget how hard the insurance investment portfolios have been hit in the past three years. Since they aren't making any money on your premiums, they have had to jack up the premiums to cover their losses.

Keep your eyes on all these insurance companies getting into banking....something isn't quite right there.