The Massachusetts Division of Insurance has approved a 6.8% reduction in the existing overall average workers’ compensation insurance rates for policies effective on and after July 1, 2020.
The rate decrease was the result of a compromise reached by the State Rating Bureau, the Workers’ Compensation Rating and Inspection Bureau of Massachusetts (WCRIB) and the Attorney General’s Office.
“We appreciate the collaboration by all the parties to lower workers’ compensation rates,” said Commissioner of Insurance Gary D. Anderson in a press release issued by the Massachusetts Division of Insurance. “This relief removes any further delay and uncertainty for policyholders and is especially important for businesses grappling with the economic impact of the COVID-19 public health crisis.”
With a few limited exceptions, Massachusetts businesses must purchase workers’ comp insurance to provide for lost wages and other expenses for employees who are injured while on the job.
The WCRIB initially sought a statewide average rate decrease of 3.8%. Following a public hearing, the rates were set through an administrative hearing before the Division of Insurance.
The State Rating Bureau, within the Division of Insurance, serves as a consumer representative in hearings on the appropriateness of rates filed by auto, workers’ comp and health insurance carriers.
Source: Massachusetts Division of Insurance
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