Riding the see-saw of workers' comp costs

Gabrielle Lis

During recession, claim numbers go down but claim duration goes up. What happens to costs?

Most employers can expect to see a reduction in the number of workers’ comp claims lodged during a recession (as we previously reported - see article), but this is no guarantee that there will be a corresponding reduction in claims costs. In fact, the severity and duration of workers’ comp claims tend to rise during recessionary periods. There are several reasons why long term claims become more common when the economy contract...

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Published 09 May, 2009