Connecticut continues to prove that it is possible to be both a pro-business and pro-worker state simultaneously, a fact that has new companies relocating to its cities. Workers compensation regulators have found a nice balance between protecting the program that provides for employees harmed in the line of duty and keeping rates low enough to remain attractive to the business community.
A high workers compensation insurance rate can cause new businesses to look elsewhere and for existing entities to hire fewer employees. Fortunately, things are different in Connecticut, where the reduction of workplace injuries and resultant claims, largely through improved safety training and regulations, has made the cost of compensation insurance less.
Because of this significant improvement in workplace safety, the National Council on Compensation Insurance, which helps dictate the rates in Connecticut and over 40 other states, recommended a reduction of the mandatory employer rate by almost 11 percent across the board. This number is quite impressive and should attract more entrepreneurs to the region.
The state regulatory commission, led by Katherine Wade, quickly approved the lower rate and has already put it into effect. This means that Connecticut has dropped its average unemployment insurance rate for an amazing three straight consecutive years. In 2015, the regulatory body dropped rates 3.9 percent and 6.3 percent, for loss costs and assigned risks, respectively. In 2014, they reduced the same categories by 2.9 percent and 2.8 percent.
Most economists agree that the lowering of the workers compensation insurance rate is a positive indicator. The American workplace has become increasingly safe. Workers are getting injured less than ever before. Plus, companies are both realizing increased profits as a consequence of the rate reduction and enjoying increased productivity as workers are missing fewer days from injuries.
This is an optimal time to purchase new insurance or update an existing policy.