SCC sets workers’ compensation premium level adjustments
The State Corporation Commission has approved revisions to the premium levels charged for workers’ compensation insurance in Virginia.
Workers’ compensation insurance provides medical care and wage replacement benefits to injured workers. Almost all Virginia employers are required to provide the coverage to their employees.
The National Council on Compensation Insurance (NCCI) sought the revisions. The changes approved by the SCC will decrease the overall premium level for the industrial, federal, surface and underground coal mine classifications in the voluntary market and assigned risk plan.
The parties to the case collaboratively considered many factors affecting the overall decreases in premium level needed for workers’ compensation insurance in Virginia, which resulted in more favorable changes for Virginia employers in this year’s application. All employers may not see a premium decrease because many factors go into the final premium such as the employer’s actual loss experience; however, the majority of employers will see some premium relief.
The changes will become effective April 1, 2020, for new and renewal workers’ compensation policies, as follows:
|Class||Voluntary Market Loss Costs||Assigned Risk Rates|
|“F” (Federal)||– 1.2%||-11.0%|
|Coal Mines (Surface)||-16.7%||-22.9%|
|Coal Mines (Underground)||-10.9%||-18.2%|
NCCI, a Florida-based rate service organization, represents insurance companies licensed to write workers’ compensation insurance in Virginia.
Virginia’s workers’ compensation rates remain among the lowest in the country.