Pennsylvania is becoming an increasingly attractive place for employers who need to buy workers’ compensation insurance.
The commonwealth improved its standing in a study ranking states by their workers’ compensation insurance costs, dropping from having the 17th-highest rates in the country in 2014 to the 26th-highest as of the start of 2016.
This ranking puts Pennsylvania exactly in line with the median cost of compensation insurance across the country: $1.84 per $100 of payroll. It also marks the third consecutive time the state has bettered its standing in the study, conducted every two years by the Oregon Department of Consumer and Business Services.
“Obviously workers’ compensation insurance is one of the costs of doing business,” said Ron Ruman, press secretary at the Pennsylvania Insurance Department. “Any time you can reduce the cost of doing business, that is a good thing.”
The insurance department and other state agencies credit the improvement to Pennsylvania’s competitive workers’ compensation insurance market, as well as a heightened emphasis on workplace safety.
More than 325 companies offer workers’ compensation insurance in the state, Pennsylvania Insurance Commissioner Teresa Miller said in a news release announcing the ranking.
The Department of Labor and Industry offers additional discounts, beyond the costs noted in the study, through certified workplace safety committees, the release notes.
Pennsylvania’s improved ranking coincides with its downward trend in workers’ compensation insurance costs. Over the past three studies, its median rate has dropped from $2.15 per $100 of payroll in 2012, to $2 in 2014 and down again to $1.84 in 2016.
Ruman noted that actual rates for individual companies vary depending on factors like workplace records and type of industry.
The median rate across the country has also decreased slightly – by about 4 cents – over the past six years.
Median workers’ compensation insurance rates
Information from the Oregon Department of Consumer and Business Services