17.2% Decrease for North Carolina Workers Compensation Rates 2019

North Carolina Workers Comp Rates will be declining in 2019

In 2019, businesses in the state of North Carolina will pay on average 17.2 percent less for workers compensation. This decrease is in addition to a 8.5% decrease in 2016 and a 12.5% decrease in 2017. This is great news for North Carolina. In 2018, North Carolina ranked near the middle of the national average. A 2018 study ranks NC as the 23 highest in premium rates across the United States making their average rates 4% higher than the national average. A similar study done in 2016 ranked the state as 27th for average rates. North Carolina’s median rates are currently on par with the average rates in the U.S. This decrease should lower the states ranking and considering North Carolina is the 10th most populous state, this is great news for the business community.

Why are North Carolina Workers Compensation Insurance Rates Declining in 2019

North Carolina Workers Compensation Rates 2019 are decreasing primarily as a result of insurance carriers processing fewer claims and paying out less for workers’ compensation claims. Because of these declines in claims and payouts, the carriers are able to pass on the savings to customers. Now not all industries are going to see the same amount of decrease. Some industries may fair better than others. According to the North Carolina Rating Bureau (NCRB), manufacturing industry groups will experience an average drop of 15.8 percent, contracting industry groups will see a decrease of 6.5 percent, and both office and clerical as well as goods and services will see an average of 19.3 percent decrease to both industries.

Requirements for Workers Comp Coverage in North Carolina?

In the state of North Carolina employers with three or more regular, full, or part-time employees are required to secure workers comp coverage. This includes all corporations and non-profits. Sole Proprietors, Partners, and LLC Members are automatically excluded from coverage, but have the ability to elect coverage. Corporate officers are included on all policies, but can exclude themselves using the Accord 130 form.

Payroll Requirements for Business Owners in North Carolina

Sole Proprietors and Partners who include themselves on coverage must use an annual payroll of $46,900 for rating purposes as of 04/01/2019. Corporate Officers who do not exclude themselves from coverage must do so at a minimum payroll of $46,800 and a maximum annual payroll of $93,600 as of 01/01/2019.

What is Unique about the Workers Comp System in North Carolina?

Experience Modification Rating

The Workers Compensation System in the state of North Carolina is unique because the state calculates the Experience Modification Rating of business on its own. The department that does this is the North Carolina Rate Bureau (NCRB). Most states partner with the National Council on Compensation Insurance (NCCI) to establish these ratings. North Carolina does report claims to NCCI for the purpose of determining interstate modifiers. This applies to employers who operate in North Carolina and other states throughout the country.

Waiver of Subrogation

Waivers of Subrogation are no longer required in North Carolina. They are not required because North Carolina Law establishes that a principal contractor is not responsible for subcontractors. This may cause contractors to face unique challenges throughout the state. Regardless, general contractors may be liable for injuries and coverage of uninsured subcontractors. In some instances, a general contactor may charge subcontractor for the cost of workers compensation while working on various jobsites.

The North Carolina Business Community will be seeing improvements next year in the form of lower workers compensation rates. This good news resulted from insurance carriers processing fewer claims and paying out less for the claims that were processed. These improvements are attributed to technology improving the efficiency in improvements and the safety of the workforce. In light of these savings, business owners should consult with their insurance agent to make sure they are maximizing all possible savings when it comes to workers compensation as well as all other forms of commercial insurance. Partnering with an independent agent is the most efficient way to ensure comprehensive coverage at the lowest rate possible.

How can Businesses Ensure Maximum Savings on North Carolina Workers Compensation Rates 2019

Partner with an Independent Agent

Partnering with an Independent Agent is one of the best ways a business can make sure to get maximum coverage at rock-bottom rates. This is a fact because an independent agent is not pressured to sell you the coverage of one insurance carrier. An independent agent can shop your policy out to multiple carriers. Multiple carriers competing for your business can get your business better coverage at better rates. Additionally, the independent agent knows which carriers are hungry to quote the policies you are looking for, in the particular state you are located, and in the industry your business operates. This inside knowledge can save you time and money when looking for coverage.

Control Your Experience Modification Rating

The experience modification rating of a business is crucial to limiting what the business pays for premium. The first thing an underwriter looks at when determining if they are going to offer coverage to a business and what to charge that business for coverage, is the classification code of the business and the experience modification rating of that business. Controlling this rating is one of the more impactful aspect a business has control over. Especially related to what the business pays for commercial insurance, especially workers compensation.

Prepare for Natural Disasters

In North Carolina, Natural Disasters are a risk to consider. This is the case no matter what part of the state you are located. Hurricanes and flooding are especially important to speak with your insurance agent about. The amount of risk you are comfortable with may not be the same as other business owners. If this is the case, it is important to express this to your agent. Tell them what you do, what the climate is like, and the level of risk you’re comfortable. With this knowledge, a good independent agent should be able to find several packages to suit your needs.

Develop an In-depth Safety Program

Safety Programs are one of the most cost effective ways for a business to save money. Not only can an effective safety program help a business save on commercial insurance, it can also help save money in many other ways. Lowering damage to equipment, less missed days by injured employees, and a happier workforce are at the top of the list of ways a business can benefit from an effective safety program.

Include a Return-to-Work Program

A Return-to-Work Program is something that can be implemented in tandem with a safety program and save your business immensely when you do experience an injured worker. Statistics show, the quicker an employee gets back to work, the more likely they are to return to work. This will save your business considerably by not damaging your experience modification rating, by not having to deal with a missing or injured employee, and by not having to retrain a new employee to do what the injured employee had experience with.

Exclude Owners

An Owner Exclusion in North Carolina is generally permitted for a business to exclude themselves from workers’ compensation insurance. This is true for every form of business. That includes sole-proprietors, partners, LLC owners, and corporations. Owners who decide to exclude coverage on themselves are not covered in the event they are injured on the job. If the business is willing to take on the risk, excluding the owners from coverage can save each year on workers compensation premium.

Ask about Credits and Discounts

North Carolina law allows insurance carriers to apply scheduled credits up to 25% of the full premium on each individual workers compensation insurance policy. This is in addition to credits already given to the policy holder.Credits are typically given because of a good Experience Modification Rate. Credits are usually given for management experience, no prior claims, and profitability of an account. Employers should always take additional time to speak long and honestly with their insurance agent to inform them about every positive the business has to offer. It is equally important to request additional credits when shopping workers compensation quotes.

Hurricane Season is Upon us

15 Tips to get your Home and Office ready for Hurricane Season

Hurricane Season is upon us. August and September are typically the worst months for hurricanes in the United States, especially on the Atlantic Coast and Caribbean. 2017 was the worst year in a decade for Hurricane damage. Here are 15 tips to prepare your family and small business for this Hurricane Season.

Hurricane Preapredness is more important now than ever.

Plan ahead in order to be Prepared for Hurricane Season

If you wait until a hurricane forms out in the Atlantic to start thinking about what to do in the event of a natural disaster, it may be difficult to adequately prepare your family much less a small business. Preparing in advance for the day your area experiences a natural disaster is the best way to have your family and business prepared.

Create a Formal Plan

Creating a formal plan, putting it in writing, and communicating that plan to your family, friends, neighbors, and employees is the best way to deal with a natural disaster. Incorporating the key employees and advisors is a great way to get the most complete formal plan developed.

Protect Your Staff, First during Hurricane Season

If you and your staff are at work when a natural disaster strikes, it is always important to take care of the health and well-being of your staff, first and foremost. This is more a case for areas of the country that experience earthquakes or tornadoes. These natural disasters have much less warning, but hurricanes typically give the ability to know they are coming for a few days at the least. The strength and severity of the hurricane may be a surprise, but not the fact that they are on the way. No matter what the circumstances around a hurricane, when your community is faced with one, it is important to help your staff in any way possible.

Keep Communication Open with staff

On top of thinking about your staff first when a disaster strikes, it is equally important to design and implement an effective communication plan for your staff. Have as many forms of communication open as possible. Some staff may prefer to communicate via email or text, others may want a phone call. No matter what time of communication plan you decide on for your organization, practice it ahead of time. This will help the situation run smoothly when disaster actually strikes.

Create a Contact List

In a day and age when most people depend upon their mobile device for a majority of the information they need at any given moment. When a natural disaster strikes, cell phone reception is not always reliable. If this does occur after a hurricane, having a contact list in a safe place will come in handy when you are trying to get ahold of your family, friends, neighbors, and employees.

Hurricane Matthew Damage

Paperwork/Collection of Information

Buying a safe is advisable in the event of a natural disaster. It is important to safely store documents like birth certificates, social security cards, passports, the deed to your house, the title to your cars, the articles of incorporation etc. It is equally important to store a list of phone numbers to organizations like the local hospital, the local police, a printed list of your employees contact info, your insurance company, etc. Do not depend upon these numbers being stored in your phone. Many times when a natural disaster strikes, there is a period of time when cell service is bad or does not work at all.

Take Before and After Photos

Taking before and after photos are especially important for your home and office. It is important to document your key equipment and the property that your business owns. It might not be a bad idea to put these photos on file with your insurance agent and carrier. The more information you record photographically, the easier the claims process will be with your insurance company.

Designate a Safe Zone within your Home and Office

Designating a meeting location within your house or office and just outside of it is crucial to keeping track of your family and staff in the immediate aftermath of a disaster. If the place to meet is inside the building, make sure it is centralized and away from windows as much as possible.

Stockpile Emergency Supplies just for Hurricane Season

Emergency supplies may be critical in the hours and days immediately following a hurricane. These supplies should include batteries, bottled water, non-perishable food, a first aid kit, entertainment, deck of cards, maybe even a harmonica. There are infinite things that can and should be included in an emergency supply kit. Planning ahead is always the best way to create this kit and checking on it periodically will help to make sure everything is in operating order.

Purchase Backup Power

A back-up generator and solar chargers are beneficial when a disaster strikes. There will more than likely be a period of time when your family and business have to go without power. Having a back up plan for power will make your family and employees much more comfortable while dealing with the results of the natural disaster.

Conduct Ongoing Maintenance of all necessary Power Equipment

Checking on the backup power to make sure it is in proper working order is highly advisable for your home and office. Also, it is wise to store the proper fuel the backup generator. If you decide to use solar as a source for backup power, the device should be tested about once a quarter.

Have a Plan for Windows and Doors during Hurricane Season

Windows and doors are important to take care of in the event of a hurricane. Even if the storm is a tropical storm or category I storm there is more than likely going to be a lot of flying debris as a result of the storm. In some way you should board up all windows and doors of any facility you own or rent. This activity takes minimal effort on your part and can save a lot of damage if done properly.

Keep Trees Trimmed

One thing many people forget in relation to hurricane season is to have the trees, shrubs, and landscaping up to date. Even in the case of the storm not being as strong as forecasted, there will still be extremely high winds. Those winds can do enormous damage to your property when they interact with overgrown tree limbs. Soem time during the month of July or August is a good time to have all the limbs on your property trimmed adequately.

Know the Location of all Power Boxes and Water Shut Off Valves before Hurricane Season

Before a storm is in the forecast, it is important to find the location of your properties water shut-off valve, power box, and surge protector. These are not parts of your property you have to deal with very frequently. For that reason, it is important to to periodically visit this part of your facility and make sure it is in proper working order. It is especially important to do this in the Summer Months prior to hurricane season.

Clean the Gutters before Hurricane Season

In addition to tree limbs and shrubs around your property, it is equally important to clean out the gutters on all properties prior to the late summer and early fall hurricane season. These gutters will be dealing with a large amount of water moving through them during the fall. If they are not cleaned it may result in further damage to the property.

Hurricane Season is Upon Us!

Is your home and office prepared for Hurricane Season?

Hurricane season is upon us in the United States. As of June 12th, Hurricane Bud is already the second named storm of the season. Bud is expected to make landfall near the Baja Peninsula of Mexico this coming Thursday through the weekend. Hurricane Aletta, the first named storm of 2018, grew to a category four storm and consisted of sustained winds in excess of 140 miles per hour. This is occurring little more than eight months after Hurricane Harvey and Hurricane Maria, category four and category five storms respectively, made landfall over Houston and Puerto Rico. Forcing many to go without power for weeks and months.

These Hurricanes should be a cautionary tale that if you live in an area that has a risk of hurricanes now is the time to plan for how you will deal with these storms when they come your way. In most places, it is a matter of when and not if you are going to deal with a hurricane. Here are seven ways to prepare your home and small business for hurricane season.

Create a communication plan

Communication is difficult in the technological age. It is even more difficult when a natural disaster occurs. For this reason, it is extremely important to have a plan in place for how your are going to get a message to the few people who are most important. On a day to day basis, we may not realize how much we depend upon our mobile devices, but the second those devices are taken away we all realize how important they are to our ever connected world. Having a plan in place for when they do not work and practicing it from time to time will help your family and small business prepare for a hurricane or other natural disaster.

Restock your emergency preparedness kit

First and foremost, your house and your business should have an emergency preparedness kit. What it has in it may depend upon where you live and what special needs the people who need to use it may have. If someone in your family or at your business are diabetic, there should be some supplies related to these health issues. If you have a young child or an elderly member of your family, you need to prepare for their special needs. Regardless of the circumstances your business and family face, there should be a place where you have some supplies for when a hurricane occurs.

Check insurance coverage

Most Hurricane insurance policies have a time period before they kick in. Most are at least 30 days in length, meaning if you are purchasing coverage now you may be late for a hurricane occurring in late June or early July. If you already have coverage in place it is a good idea to dust off that policy and see what may or may not be covered. Partnering with an experienced independent insurance can help you determine what coverage you have and if there is additional coverage you may benefit from.

Consider flood insurance

In many cases flood insurance is necessary in addition to hurricane coverage. Each policy has limitations to what is and what is not covered. In most cases, flooding that occurs after a hurricane has occurred is not covered unless you have a separate flood insurance policy. Most small businesses can eliminate this gap in coverage by purchasing a business owner’s package. In a state where natural disasters are common, this should be a standard part of most comprehensive packages.

Make copies of important documents

There are many documents that are extremely important after a natural disaster occurs. These documents may include passports, birth certificate, social security card, the title to your car or house, bank account records, copies of your insurance policies, and the phone numbers related to any of these documents.

Back up your electronics

If you own a small business, it is crucially important for you to back up all data that may be important. Depending upon the industry you operate in this may be a small amount of data or it may be an enormous amount. No matter how large or small, it is essential to have a place where this data is safe. Backing up your electronics at your home is equally important. There are more than likely numerous important bits of information saved on all of the devices in your house. Not to mention the many many pictures we share to all of our devices. Without a plan in place, these will all be lost after a natural disaster.

Review Your Supply Chain

If you have ever lived through a natural disaster like a hurricane you more than likely know that the world keeps on moving no matter how bad the situation is in your area. If you own or operate a small business that does business regionally or nationally, it is important to have a plan in place for how to keep the business churning throughout a natural disaster. Customers are still going to expect on time delivery of the goods and services you have contracted in advance. Thinking about these situations in advance can be the difference between a hurricane being a small slow down in business and a situation that your business never recovers from.

Drones and Aerial Photographs

Drones are helping the insurance industry process claims much quicker in disaster ridden areas.

In the wake of three devastating hurricanes this fall, many insurance carriers have begun to use drones and and other aerial vehicles to aide in the claims process. The use of drones have sped up the turn around time for claims processing dramatically.

Drones and Aerial Photographs

Unfortunately, this fall far too many small businesses are beginning to understand the need for protecting their small business with adequate insurance. These same business owners are also getting more familiar with the claims process between the business, the insurance agency and the insurance carrier. If they did not know before, they are becoming familiar with at this time, the fact of how crucial it is for a claim to be processed quickly. Getting victims back to everyday life can have an enormous impact on the communities impacted by natural disasters. This is what the insurance industry is striving to help the communities hurt by the hurricanes over the past few months.

Technology is helping in many ways. First, drones are helping carriers take both still photos and video to observe properties they are not physically able to visit. The carriers can use the information they get from drones, both in the form of aerial photographs and video, to create 3D images of the impacted area. Technology is now allowing them to do this at scale and determine what percentage of a property is destroyed without ever setting foot on the property. Now, this is not possible in all circumstances, but it is possible in many. Every case that is sped up, frees the adjusters to move on to other victims who desperately need help.

According to an article with the Insurance Journal, a recent KPMG (Klynveld Peat Marwick Goerdeler) Survey found, “the two biggest challenges facing insurers are the difficulties in assessing property damage and managing customer expectations”. As a result of the same survey insurance executives overwhelmingly said, ‘To improve claims efficiency and communication with customers, insurance executives cited the use of drones as one of the technologies they will utilize to help quickly settle claims’. Drones are helping with these exact problems facing the insurance industry, by allowing those within the industry to show the victims, with pictures and video, what they are doing and how they are going about doing it.

Through the use of drones many companies within the industry are able to drastically speed up the processing time for claims by allowing the insurance claims processor to get a majority of the claims process done without the ability to physically visit the property. Once they are able to get out to the property, insurance professionals can use the drone to examine several properties in a particular area in a short amount of time. This allows the claims adjuster to spend a short amount determining what properties are most devastated and will need the most of his time. It can also allow the adjuster to determine if another property does not need any further observations on his part and free up time for him to observe other areas that are severely devastated.

This is just the tip of the iceberg for how this and other technologies will help the insurance industry, better serve their clients in the future.