American Eagle Insurance Blog
The coronavirus, or COVID-19 pandemic, had a devastating impact on workers. Recorded unemployment levels evidence it. And the pandemic caused a rapid shift to stay at or work from home.
It is vital to understand the potential challenges. It will help to develop appropriate mitigation strategies.
Companies have already realized the impact of COVID-19 on employees. Thus, claims for COVID-19 exposure at work outpaced other work-related injuries. But the workers' compensation insurance market remains competitive thus far.
However, employers needed to face sizable challenges. These include payroll management and classifying new laws related to COVID-19. More so, it allows employees to submit claims alleging workplace exposure to COVID-19. Aside from that, telemedicine is used to process the claims of the employees.
Compensation for COVID-19 Claims
According to Marsh data, buyers generally renewed with rate changes of between -5% and +3% in the first half of 2020. Among casualty, workers' compensation remains the highest. With the frequency of non-COVID-19 claims, the remaining workers' compensation gets lower too. As fewer pandemic effects are expected.
Several states applied the presumption to certain industries. Of course, these industries include healthcare workers and first responders. Some states applied the new rules broadly to help more employees.
Workers' Compensation Market remains Competitive.
The workers' compensation market remains competitive. Employers must contend with many difficulties in managing insurance coverage—workplace safety programs. The pandemic has prompted employment decisions that may make quantifying these variables difficult.
The COVID-19 Impact
Companies with large deductible programs will face more complications. It is the result of disease claims deducted on a per-employee basis. Since the coronavirus is contagious, the tendency of infecting numerous employees is possible. Each employee will have a separate deductible. Material risk retention losses may surpass initial expectations.
The coronavirus affects different groups of people in various ways. And it affects employers and employees in ways we never expected.
At American Eagle Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (225) 667-7377 or Click Here to request a free quote.