HOW HAS COVID-19 IMPACTED WORKERS’ COMP?

More than the anticipated spike in COVID-19 claims, the recession has been catastrophic for the workers’ compensation system, wreaking havoc for those employed in hospitality, retail, travel, education and healthcare. According to the U.S. Census Household Pulse Survey, since March 2020, about 50 percent of the U.S. adult population has had a loss of household income.  With reduced household income comes reduced workers’ compensation premium.  According to the NCCI, there has been about an 8 percent reduction in national workers’ compensation premium when comparing 2020 to 2019. While the data is expected to change and evolve as the true weight of the virus becomes more known, “carriers have generally suggested that during 2020, decreases in non-COVID-19 losses have more than offset increases directly attributable to the pandemic….significantly reduced mileage has resulted in fewer work-related motor vehicle accidents, and more remote work has limited the incidence of typical workplace slips and falls.” Early data suggests that while COVID-19 is responsible for workers’ compensation claims, the majority are related to work time loss and the more serious claims, while present, are in the minority.

Source: Donnell, Bill.  “Responding to the Impact of COVID-19 on Workers Compensation.” Carrier Management: Critical Information for P/C Carrier Executives, January 14, 2021, https://www.carriermanagement.com/features/2021/01/14/215825.htm.  Accessed 20 January 2021.