Vermont workers compensation rates are set to decrease for a fifth consecutive year. This decrease is a result of the state’s General Assembly setting a contribution rate for employers. This rate is equal to 1.75% of an employer’s direct calendar year premium. More information on these rates can be found at the Vermont Department of Labor.
Workers’ compensation is a complex system of benefits that pay for medical treatment and wage replacement for injured workers. Most Vermont employers are required to carry this type of insurance. The rates can vary widely depending on the size of the company and the risks involved in the line of work. However, the benefits covered by workers’ compensation are usually better than average.
The rates in Vermont are a bit higher than the national average. This is due to the fact that each job classification has a base rate commensurate with its inherent hazards. This rate is used to calculate premium costs and is required by law by insurance companies. Moreover, the rates are subject to adjustments of up to 25%, which can benefit companies with a solid safety record but higher than expected employee injuries.
If you are looking for the best Vermont workers compensation rates, you should start with the NCCI classification system. The NCCI is an organization that collects data on employer claims and makes recommendations to carriers and the Vermont Department of Insurance every year. Every insurance company must file their rates with the state for approval each year. Each insurance company has the option to apply policy credits of up to 25% of their annual payroll, and can even apply discounts based on the employer’s claims experience.