Indiana’s workers’ compensation rates will drop an average of 7.6 percent effective Jan. 1.
The Indiana Department of Insurance announced Oct. 17 it had approved the reduction, which the state projects could save the Indiana’s businesses $62.7 million.
“The significant savings will help support Indiana businesses as they grow their companies,” said Indiana Department of Insurance Commissioner Stephen Robertson.
Workers’ compensation rates in Indiana have been declining for several years, the state said. The state credits a reduction in reported worker injuries and a robust job market.
The state said as payrolls increase and the economy grows, it creates a larger base for collecting premiums. Workers’ compensation insurance covers medical costs associated with workplace injuries and provides wage replacement benefits to injured workers for lost work time.
Indiana workers’ compensation rates consistently rank one of the lowest in the U.S., according to the Oregon Workers’ Compensation Premium Rate Ranking report. The Information Technology and Research Section in the Oregon Department of Consumer and Business Services has examined state rates on a biennial basis since 1986.