VT Gov. Announces Lower WC Insurance Rates

                               Montpelier, VA (CompNewsNetwork) - Governor Peter Shumlin announced today that for the fifth straight year workers' compensation insurance rates will decline for most Vermont employers, effective April 1.

“Vermont's private sector employers and their employees deserve the credit for this remarkable turnaround in workers' compensation insurance costs,” said Gov. Shumlin. “Their relentless focus on safety in the workplace is producing results and making Vermont a more attractive place to do business.”

In the voluntary market – the competitive market offering the most favorable rates – loss costs will decrease by an average of 2.6 percent, with two iconic Vermont industries receiving significant reductions: dairy farms at 15.9 percent and ski areas at 9.7 percent. Loss costs are the primary component of workers' compensation rates. Approximately 82 percent of Vermont employers receive voluntary market coverage.

In the assigned risk market – the market for employers unable to obtain coverage in the voluntary market – rates will decrease by an average of 4.3 percent. Rates in both the voluntary and assigned risk markets vary by industry and classification.

“Vermont's workers' compensation insurance market is getting stronger, as reflected by the declining frequency of accidents and the declining percentage of employers in the assigned risk market,” said Steve Kimbell, Commissioner of the Department of Banking, Insurance, Securities and Health Care Administration (BISHCA). “With more than 25 carriers actively writing this coverage in Vermont, the folks in our insurance division deserve a pat on the back for maintaining a positive and competitive business environment for insurers.”

According to Kimbell, this year's reductions, in the aggregate and assuming that other variables in the system remain constant, will result in savings of $3.8 million for Vermont employers. Using the same assumptions, savings over the five year period through from April 1, 2007 to April 1, 2012 will total $37.5 million.

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