Warning Issued by the Federal Congressional Budget Office about Worker Compensation
Bad news was heard by anyone who pays for worker compensation when the Federal Congressional Budget Office issued its analysis of the Terrorism Risk and Insurance Act of 2001 (TRIA). The act known as TRIA was a backstop for re-insurance companies in case of a terrorist attack. The Federal Congressional Budget Office is recommending the TRIA be allowed to expire allowing the marketplace the opportunity to prepare for a pro-longed battle against terrorism. One of the main areas that will be affected if TRIA is allowed to expire will be Worker Compensation. Workers Compensation insurance is required to cover against all losses. A near-term, substantial increase is most likely according to the recommendation. Worker Compensation expert, Cary Duke, of The Comp Expert, states business owners can begin to prepare against this warning of substantial increase by addressing the prevention and management of worker injuries.
Flower Mound, TX (PRWEB) January 13, 2005
Bad news was heard by anyone who pays for worker compensation when the Federal Congressional Budget Office issued its analysis of the Terrorism Risk and Insurance Act of 2001 (TRIA). The act known as TRIA was a backstop for re-insurance companies in case of a terrorist attack. The Federal Congressional Budget Office is recommending the TRIA be allowed to expire allowing the marketplace the opportunity to prepare for a pro-longed battle against terrorism. One of the main areas that will be affected if TRIA is allowed to expire will be Worker Compensation. Workers Compensation insurance is required to cover against all losses. A near-term, substantial increase is most likely according to the recommendation. Worker Compensation expert, Cary Duke, of The Comp Expert, states business owners can begin to prepare against this warning of substantial increase by addressing the prevention and management of worker injuries.
Most business owners already believe they are paying an excessive amount for their worker compensation insurance. Many states are actively working to fix the broken workers compensation system such as what has occurred in California. Texas and South Carolina have legislative agendas to cover this exact issue. The announcement by Federal Congressional Budget Office is more evidence that business owners must become proactive in preventing their insurance premiums from sky rocketing. The use of injury prevention methods, outside of safety programs, to decrease workers compensation is part of an overall program that risk managers, insurance agents and business owners can implement that create a better workplace. Utilization of pre-employment examinations combined with a post-offer of employment can uncover potential risks. The reason is that questions and answers may be discovered during this process that are not allowed by traditional hiring interviews. Many employees feel as if they are left to fend for themselves if they do become injured. Employers miss a great opportunity to make a difference to their employees when they do not stay involved in the process. Leaving the “system” responsible for getting the employee healthy and able to return to work.
The announcement by the Federal Congressional Budget Office of its recommendation to allow the Terrorism Risk and Insurance Act of 2001 to expire is a warning to all business owners to keep an eye on their insurance program. It is about to change and not for the better. In the face of the challenges presented by this announcement and the many legislative changes occurring, it is more important than ever that business owners find assistance. The Institute of Work Comp Advisors is one such resource. Cary Duke, a certified Work Comp Advisor, believes these experts can make a meaningful difference to assist employers through these challenging times. Mr. Duke can be contacted at info@TheCompExpert. com.
Cary Duke is a licensed insurance agent who specializes in Workers Compensation. Based in Flower Mound, TX, he provides education and consultation on how to gain control of the workers compensation expense to business owners across Texas. He specializes in companies with 50-500 employees. For more information, visit www. TheCompExpert. com or call 972-355-3355. He is also available to speak to associations and groups of 20 or more. A Bio sheet and Q and A are available upon request.
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