The COVID-19 pandemic has changed how employees and employers move through the workforce and workplace considerably. One aspect that has thus far received little attention is how COVID-19 is affecting workers’ compensation claims.
Since so many HOAs have fewer financial resources available than large companies do, workers’ compensation claims present a very real obstacle to remaining financially healthy. Blue Lime is here to guide you through this challenging time – our friendly agents can answer all your questions and guide you to the policy that’s right for you!
What does the workers’ compensation landscape currently look like?
The primary reason claim costs are rising is because the COVID-19 pandemic has led to an increased length of time between the initial claim and when the claim can be closed.
HOAs should be prepared for the likelihood of seeing an increase in the cost of services from their vendor partners. While the increased costs can’t be attributed to workers’ compensation alone, insurance premiums are expected to rise for all industries.
What does the future of claims look like?
It’s hard to predict without knowing for sure the trajectory of the pandemic. It’s likely that the claims bottleneck will eventually reverse – with fewer people working, the number of claims will eventually drop. However, it’s also possible that the economy could recover more quickly than what is currently being anticipated, in which case, workers’ compensation claims would likely go back to pre-COVID-19 levels.
There are several factors that might affect your premiums and even cause an increase in your premiums.
One major factor is that HOAs and the businesses connected to them are likely to see an increase in workers’ compensation insurance premiums. This will cause all prices to rise, as vendors will pass this loss of revenue off onto the consumer.
A second risk factor for an increase in workers’ compensation claims is when the economy starts to recover and more employers are able to hire workers back. Workers no longer used to physical labor every day and those who have forgotten safety procedures are at an increased risk of injury.
Finally, there is some speculation in the insurance industry that there will be an increase in workers’ compensation claims related to COVID-19 specifically.
So, what can I do to help my HOA navigate through this tough time?
When shopping for your insurance, remember that a financial downturn is a time when the financial strength rating of your insurer is of crucial importance. The stronger your insurer is financially, the more likely they are to continue being responsive to their customers.
Remember, most HOAs need workers’ compensation insurance when utilizing volunteers. This means that COVID-19’s impact on workers’ compensation claims is something that affects all HOAs.
We at Blue Lime stand ready to assist! If you have any questions or concerns about your HOA insurance coverage, or if you need some guidance about selecting the insurance policy that’s right for your HOA, please don’t hesitate to reach out to us!