It’s becoming a rare thing to hear of anyone reducing their prices in this economy (with the possible exception of retailers desperate to move merchandise) but it’s happening in Vermont, because officials believe businesses there are overpaying for workers’ compensation insurance.
The National Council on Compensation Insurance has recommended that Vermont workers’ compensation insurance be dropped in price by thirteen percent.
State regulators must still decide whether or not to follow the recommendation, but if they do (as is expected) rates overall for the largest portion of workers’ compensation insurance will have their second drop in as many years. Last year, there was a 4% decrease.
In a statement to the press, Patricia Moulton Powden, Vermont Department of Labor Commissioner, said that this drop was “extraordinarily good news.”
Employers in Vermont think such a rate drop is good news as well. They already pay almost $200 million each year in workers’ compensation claims, so a rate decrease of 13% would mean a significant savings.
Does this make Vermont a safer place to work, than most others? It’s possible. When asked the reason for rate decrease officials answered that there were fewer claims made. National Council on Compensation Insurance representative, Laura Backus Hall, credits worker safety programs. Apparently companies in Vermont are incredibly conscientious about on the job injuries.