Kentucky businesses are seeing a decrease in workers comp premium costs for the 18th year in a row.
That’s according to the latest filing from the National Council on Compensation Insurance. It reports an average loss cost decrease of 6.4 percent.
A loss cost is the amount of money insurance companies pay when a claim is filed. Lower loss costs mean lower insurance premiums for businesses.
Sharon Clark is the Kentucky Department of Insurance Commissioner. She says this lower cost is good for economic development.
“In this day, when we have inflation and some of those uncertainties, the fact that this is one employer expense that is going down, I think is definitely good news for employers,” Clark said. “And it also, I think, sends a message out to future employers that we have the practices and policies in place, that it’s a good environment in which to work.”
Clark also says it’s possible these costs are going down because of a focus on employee safety.
“It is indicative that our employers are more cognizant of that possible risk and exposure out there in the workforce and in the work environments,” Clark said. “And also I think our employees, having an experienced workforce, it helps them.”
The fields affected include manufacturing, office and clerical work, contracting, and goods and services. The new premium goes into effect 2024.
