Modest Increase Approved for Workers' Compensation Rates in NC

Sheila Chavis

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Despite a requested increase of 5.9%, it has recently been announced that NC Workers' Comp rates will only increase by 1.6%. This is a relatively minor increase, compared to a 7.3% increase in 2006 and a 9.3% increase in 2005.

Business owners, through their lobbyists, have emphasized that one of their major cost concerns is the expense of workers' compensation insurance. The N.C. Rate Bureau, which represents insurance companies doing business in N.C., requested a 5.9% increase. In an effort to improve the business climate in N.C., negotiations between the N.C. Department of Insurance and the N.C. Rate Bureau netted the meager increase for 2008. It is perceived that this minor increase will benefit both employers and employees.

The Insurance Department estimates that negotiating the lower rate increase could save businesses as much as $56.1 million. The increase takes effect April 1, 2008.

For more information on this subject, please refer to the section on Worksite Injuries and Workers Compensation.