[QUOTE=gabbycakes;680865]
Quote:
Originally Posted by Dubious
My client has been in business 25 years and we have never had a W/C Claim in all those years. The rough math for preiums over 25 years = $100,000.00 and that's just one small company. Of course the charge have gone up so let's take $30,000.00 off, so it's $70,000.00 rough. W/C insurance prices are calulated by the dollar amount of your payroll and the number of employess. So just imagine a large company like Wal-Mart who employess thousands or many thousands. Sorry, W/C Insurance Companies are earning tons of profits and just working on the basis pay as least as you can and fight the claimant until they give up...
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certainly am not an insurance company apologist, but you just made my point! One low back surgery claim over the last 25yrs and 4 employees, not unlikely odds, would cost well over $100k for surgery not to mention a disability settlement that could reach the same and then future medical care for life (ave. age of a disc patient is around 40), say another 25 years, might be another $50-$100k, or more. And if revision surgery was necessary.....
So while I again, am no advocate for that industry, I can understand that one claim, as above, may generate medical costs of $200-300K+ over the life of the claim, compared to the $70k for 25 yrs of premiums. So the cost to insure 4 for 25 yrs, is a fraction of what the employer would be responsible for (personally, if he carried no WC insurance) in the above scenario, just for one employee; one injury!
It is rather moot, though, as I am sure that all states mandate that all employers carry WC insurance.
I am totally with you! I do agree as an employer, it is crazy what we must spend for WC premiums!