Virus Impact on WC Claims

To date, while mask mandates have differed from state to state, so too have workers’ compensation claims related to Covid 19 due to a number of different factors. According to AmTrust, workers’ compensation claims were down in number immediately following the start of the pandemic as many people were out of work and had no claims to submit.  As the virus has continued on, there has been more of a spike in claims related to both presumption of compensability rules as well as how states have handled shut-downs. Because states have handled the virus differently, trends in claims related to the virus remain unique to each state. In states that did not have wide-spread shut-down orders, spikes in claims were observed early on as employees remained out in the workforce with increased exposure to the virus.  In other states where presumption laws have been put into place, spikes in claims corresponded with these laws being put into effect.  Further impacting claims is the fact that certain industries such as health care and the public sector, for example, increase some employees’ risk of exposure.  Additionally, with many businesses forced to cut down on number of employees, there is an increased risk for claims because workers may now need to be responsible for tasks they have not had to do in the past and may not be as well trained for.  As states continue to charter new waters and introduce new rules around workers’ compensation and Covid 19, the effect will likely have a significant impact on the insurance industry.

Source: https://www.insurancebusinessmag.com/us/news/workers-comp/state-presumption-rules-throw-wrench-into-workers-compensation-234426.aspx