Workers' Compensation Insurance: A Market in Crisis

By Richard Poling, Program Director of LIBRIS

According to a June 23, 2003, New York Times article, "Nationwide, the average cost of workers' compensation insurance has risen 50 percent in the last three years." Depending on where you are located, that percentage could actually be far greater, or possibly less. For instance, California is now in a crisis where carriers have continually adopted at least 30 percent annual increases (cumulatively over 100 percent) since before 2000.

LIBRIS (League of Independent Book Retailer Insurance Services), which is sponsored by the American Booksellers Association and owned by ABA members, has been actively writing workers' compensation since its inception in 1997. In recent years, the number of bookstores buying workers' compensation from LIBRIS has increased faster than the number of those buying any other type of LIBRIS insurance.

Booksellers are encouraged to take advantage of LIBRIS' competitive rates. If you have received a substantial premium increase from another insurance provider at the time of your last renewal, we encourage you to request a quote from LIBRIS and to consider switching your coverage mid-term.

A growing number of bookstores are choosing to opt out of the workers' compensation system (in states where this is allowed) and instead rely on their company's health insurance coverage. However, since many employers cannot purchase affordable health insurance, LIBRIS is encouraging all its policyholders to make sure that employees, owners, and managers are covered by workers' compensation.

LIBRIS not only provides competitive rates in tough market conditions, it is dedicated to helping the bookstore industry control or reduce losses.

The Times article indicated that medical costs associated with workers' compensation claims have risen from about $10,000 per claim in 1992, to over $35,000 in 2002. Unlike many other insurance companies, which operate on autopilot after a policy is written, when a workers' compensation loss occurs, LIBRIS is there to help manage the claim, reduce costs, and assist the employee throughout the process. As a result, LIBRIS has been able to maintain competitive pricing and continue to be a formidable market presence in these tough times.

NOTE: Booksellers are invited to contact LIBRIS at (888) 694-8585 or www.LIBRIS.org with questions about business property, liability, or workers’ compensation insurance. The staff at LIBRIS is happy to provide a free, no-obligation insurance quote usually within one business day.