November 2014
By: Anthony J. Caruso, Jr., Esq.
Good news for Illinois employers. The
insurance premium rates for workers’ compensation insurance in the State of
Illinois will continue to decrease for the 2015 year.
In July, 2014, the National Council on Compensation
Insurance (NCCI) delivered a workers’ compensation advisory rate and
advisory loss cost filing to the Illinois Department of Insurance. Based upon its review of the most recent
available data, NCCI has proposed an overall average workers’
compensation advisory rate change of -5.5% to become effective January
1, 2015. With the implementation of this proposed change, the advisory rate
level will be 19.3% below the advisory rate level prior to the 2011 workers’
compensation reform legislation.
The Illinois Department of Insurance has accepted the 5.5%
drop in the advisory workers’ comp rate for 2015 recommended by the National
Council on Compensation Insurance. 70% of carriers adopted the advisory rate.
It is estimated that the latest proposed reduction in
workers’ compensation advisory and loss cost rates could result in an overall
reduction in premiums of up to $143 million in 2015, with the total savings
since the reforms were enacted in 2011 of $458 million.
The average rate change for the January 1, 2015 rate filing
by Industry Groups are as follows
- Manufacturing = -5.1%
- Contracting = -4.8%
- Office = -7.6%
- Goods and Services = -5%
- Miscellaneous = -6.4%
Employers should contact their insurance agent prior to
their 2015 renewal date to determine the impact on their premium.
Please note that the NCCI rate reduction is advisory as to
each individual insurance company issuing workers’ compensation insurance coverage
in the State of Illinois. Generally,
most insurance companies will charge at or near the advisory rate by the
NCCI. The exception is for employers
placed in the assigned risk pool who pay a substantially higher rate due to
various factors (i.e. high loss experience, high risk industry, or no prior
loss experience).
If you have any
questions about this topic or any other questions related to workers’
compensation, please call attorney Anthony J. Caruso of Wessels
Sherman’s St.
Charles, Illinois
office at (630) 377-1554 or email ancaruso@wesselssherman.com.
