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 email@example.com.