The settlements, if approved by a state court, would increase worker's compensation rates by 9.8 percent beginning in July. The Florida-based industry group pushing the increase, the National Council on Compensation Insurance, was proposing that worker's compensation rates in South Carolina rise by almost 24 percent on average. An agreement was reached, however, between the group and businesses after the S.C. Department of Insurance rejected the increase last year and the trade group appealed that decision.
This issue is a major one for small businesses, because worker's compensation can really take a toll on their revenue. As The Post and Courier reports, "As it is for many small businesses, the premium for coverage for employees who are injured on the job is one of his biggest expenses after payroll."
The smaller increase means big savings for South Carolina businesses. The Post and Courier goes on to quote Frank Knapp of the S.C. Small Business Chamber of Commerce in Columbia, who estimated the smaller increase will save employers more than $130 million.