Several groups of employers could soon be paying much lower workers' comp rates if proposed changes to the state's workers' comp classification system move forward. Plans are in the works to carve out new industry classifications for some kinds of employers and to reclassify others.
The indicated pure premium rate for some of the affected employers could be as much as 47% lower. But others would see rates moving in the opposite direction.
The changes were approved by the classification and rating committee of the Workers' Compensation Insurance Rating Bureau (WCIRB) and will be considered next by its governing committee. The Governing committee usually trusts the work of its sub committees so approval is extremely likely.
Ultimately any changes will have to be included in the Bureau's filing and approved by the Insurance Commissioner before they could take effect. Classification changes are approved as a matter of routine.
So here's what changes are in store for 2014:
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Dry Cleaners: Under the proposals retail dry cleaners have the most to gain of any affected group with the possibility of a 47% drop in the loss to payroll ratio that's used to compute pure premium rates.
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Boat Marinas: Operators of boat marinas around the state would not be as lucky and could see their loss to payroll ratio increase by 23% if they are carved out and moved into a new classification.
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Dry Cleaners & Garment Dying: The committee is recommending that existing classification 2586 be eliminated with its principal groups of employers – dry cleaning operators and employers engaged in dyeing garments – being split and moved into other existing classifications. The former would be moved to classification 2589 while the latter would move to classification 2585.
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Diaper & Uniform Services: Class 2589 already covers some dry cleaning and laundry operations, but does not cover diaper service or uniform and linen service companies. Class 2585, which would be joined by employers engaged in dying garments, covers these operations.