Massachusetts Attorney General Martha Coakley said she opposes an insurance industry request to raise workers’ compensation premiums by about four percent this year. She said the hike would put an “additional strain” on employers already struggling in a tough economy.
If accepted by the state insurance commissioner, the rate increase will cost employers more than $40 million in extra premiums.
The insurance companies, through their rating organization, the Workers’ Compensation Rating and Inspection Bureau (WCRIB), must seek approval from the commissioner to raise rates. Coakley said her office intends to intervene in the administrative rate process to oppose this proposal.
“Businesses, particularly small businesses, are already struggling in these difficult economic times and cannot afford to overpay for insurance coverage,” said Attorney General Coakley. “We have serious concerns about the insurers’ proposed rate hike and the additional strain that it would put on employers.’
Businesses are mandated under state law to purchase workers’ compensation insurance.
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