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Injury Claim Rates – Frequency Not Decreasing in All Areas

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Injury Claim Rates Increasing in WHCA and DBA

Industrial accident injury claim rates are not falling in all areas.   Last month I attended the NNCI 2024 Annual AIS in Orlando.  One of the astounding statistics was the claims frequency had decreased over 4% in 2022 and 8% in 2023.  Check out the graph here. 

I came across a March 2024 US Department of Labor (USDOL) Longshoremen’s Conference slides while working on an extended project.  Download the slides from this page for more info.   The slides are worth a look.  Two of them covering injury claim rates are included below.

Let us look at the definitions of the WHCA and DBA before we cover the graphs.

The Defense Bas Act and the War Hazards Contractors Act  are two similar coverages for injuries that occur outside of the US.

WHCA – All U.S. government contractors and subcontractors are required by federal law to obtain workers’ compensation coverage for civilian employees who work overseas. The WHCA provides full federal reimbursement of contractor costs for injury or death claims related to “war-risk hazard” pursuant to a worker’s compensation claim. The main purpose of the WHCA is to shift the costs of overseas workers’ compensation from contractors and subcontractors to the U.S. government. Language of the legislative hearings in 1942 suggests that Congress recognized that there are some risks that the private sector cannot calculate or financially take in the normal course of business and are best left to the federal government. (Gary Wickert Law Firm)

DBA – Provides compensation for disability or death to persons employed at the military, air, and naval bases outside the United States.

DBA claims injury rates graph
(C) USDOL
WHCA injury claims rates graph
(c) USDOL

Bottom Line

The injury claim rates for the workers that protect us overseas spiked in 2020, 2022 and 2023.   I will go into the “why”.  The numbers speak for themselves as they usually do in most instances.

 

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James J Moore - Workers Comp Expert

Raleigh, NC, United States

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James founded a Workers’ Compensation consulting firm, J&L Risk Management Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

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James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

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