Workers Comp Reform Hasn't Helped The Construction Industry
From Crain's Chicago Business
It's been three years since sweeping reforms to Illinois workers' compensation laws reduced the costs for treating injured employees. But those in the construction industry say they have yet to see meaningful reductions in premium costs. In fact, some firms still are watching their workers' compensation rates creep up—even as Gov. Pat Quinn touts a 19.3 percent drop in such costs statewide since 2011.
“Everybody agrees costs have come down, but nobody is reporting that premiums have gone down,” says David Menchetti, a partner in Chicago law firm Cullen Haskins Nicholson & Menchetti PC, who represents injured workers. “For the overwhelming majority of employers in the state of Illinois, premium is all that matters.”
“There are a lot of moving parts,” says Chris Irle, a managing director in the Chicago office of London-based Aon Risk Solutions, a commercial risk brokerage firm. “When (costs) come down, that doesn't necessarily translate into workers' compensation premium savings.” Mr. Irle says that for years, insurance companies were losing money on Illinois polices. In 2010, they paid out $1.21 for every $1 earned from a premium.
Insurance programs have become profitable, paying out 94 cents for every dollar earned in 2013.
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From Crain's Chicago Business
It's been three years since sweeping reforms to Illinois workers' compensation laws reduced the costs for treating injured employees. But those in the construction industry say they have yet to see meaningful reductions in premium costs. In fact, some firms still are watching their workers' compensation rates creep up—even as Gov. Pat Quinn touts a 19.3 percent drop in such costs statewide since 2011.
“Everybody agrees costs have come down, but nobody is reporting that premiums have gone down,” says David Menchetti, a partner in Chicago law firm Cullen Haskins Nicholson & Menchetti PC, who represents injured workers. “For the overwhelming majority of employers in the state of Illinois, premium is all that matters.”
“There are a lot of moving parts,” says Chris Irle, a managing director in the Chicago office of London-based Aon Risk Solutions, a commercial risk brokerage firm. “When (costs) come down, that doesn't necessarily translate into workers' compensation premium savings.” Mr. Irle says that for years, insurance companies were losing money on Illinois polices. In 2010, they paid out $1.21 for every $1 earned from a premium.
Insurance programs have become profitable, paying out 94 cents for every dollar earned in 2013.
Read more in our daily News Update...