BOSTON (Legal Newsline) - Massachusetts Attorney General Martha Coakley announced a settlement on Friday with the State Rating Bureau and the Workers Compensation Rating and Inspection Bureau that will save businesses $75 million in proposed Workers' Compensation rates.
Coakley's office opposed a 7.7 percent increase in Workers' cCompensation insurance rates proposed by the insurance industry, alleging the request was unjustified because it was based mainly on an increased profit load. Through WCRIB, an industry trade group, large insurance companies like AIG, Liberty Insurance and Traveler's Insurance Co. planned the proposed rate hike and sought approval from the Commissioner of Insurance.
After hearing Coakley's arguments, the Commissioner of Insurance approved a settlement on Friday that eliminates the proposed plan for increases. The settlement will save Massachusetts employers a total of $75 million.
"As the commonwealth continues to address high unemployment, this is not the time to unfairly increase these costs for the private sector, especially for the small business community," Coakley said. "We believe the proposed rate hike was completely unjustified and are pleased to see that rates will now be applied more fairly."
Massachusetts businesses must buy Workers' cCompensation insurance to provide coverage for expenses and lost wages of workers injured on the job. Rates for the insurance are set at least every other year in an administrative rate hearing before the commissioner.
Coakley's Insurance and Financial Services Division advocates for fair rates for insurance companies. Since 2007, Coakley's office helped small businesses and other employers to save hundreds of millions of dollars in Workers' Compensation insurance administrative rate cases.