Large employers located in certain cities or in certain industries may find workers' compensation insurance harder to land and, when they do, at a higher price, according to Marsh Inc.
Marsh asserts that the reduced capacity could grow as the Terrorism Risk Insurance Program Reauthorization Act of 2007 comes to its 2014 expiration date, and the impact is already evident as carriers have reduced the insurance capacity for employers in those high-risk cities or industries.
Carriers have commonly watched workers' compensation exposure to determine the potential impact that, say, an earthquake would have on an employer's book of business. California, in particular, often saw this practice, though that changed after the 9/11 attacks. Workers' compensation carriers and reinsurers started to focus on employee concentrations in large cities that were identified as high-risk targets for terrorist attacks.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
