if an employee files a claim because of an injury at work, will my worker compensation insurance go up in the future?
By how much? what are the components? does the employer pay all or majority of the cost of the claim?
Answer by Kay
Yes it will.
Answer by Tucker T
it depends a lot on the degree of the claim, and how many claims you have had, but most likely your premiums will go up slightly
Answer by mbrcatz
Maybe.
If the policy is very small, it will NOT be subject to experience rating, and the rates will not go up.
If the premium is over $ 5,000, though, then it is "experience rated". The claims for the employer are compared to ALL claims in that state, for that class code, and if the employer has more claims/dollars paid out than average for that class code (job type) they WILL be surcharged, based on how much higher than average their claims are.
It's not a dollar amount, it's a percentage amount - the highest it can be, or rather, the highest I've ever seen, is 210% of standard. So if their standard premium is $ 25,000, with the surcharge, it can be $ 60,000 max. If their standard is $ 100,000, it can be $ 230,000ish.
The actual claim costs are NOT paid by the employer, unless they are "self insured". That doesn't usually happen, until/unless they are large employers - their standard premiums would usually exceed $ 500,000 or so.
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