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Article: Workers compensation putting businesses in bind. (includes related article) (Industry Report)
- Article from:
- Arkansas Business
- Article date:
- January 4, 1993
- Author:
CopyrightCOPYRIGHT 1993 Journal Publishing, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Insurance Commissioner's Proposed Reforms Could Resolve Problem of Rising Costs
SUTTON PRODUCTS INC., a growing millwork manufacturer in Bergman, north of Harrison, paid $34,000 for workers compensation coverage for its 60 employees in 1991.
A year later, that cost would have risen to $50,000, if there were an insurance company that would underwrite the coverage.
But none would.
So Sutton's workers compensation costs skyrocketed to $70,000 when the coverage was placed in Arkansas' assigned pool of insurers.
The sudden increase in costs forced Sutton to eliminate any raises for its workers. With a hiring freeze on, Sutton's employee level ...