S.C. workers' comp rates to increase by 10 percent from July

Insurance rates that South Carolina businesses pay for workers who are injured on the job will increase by an average of nearly 10 percent from this summer, far less than the amount requested by the company that recommends workers' comp premiums in the state.

The National Council on Compensation Insurance, or NCCI, and consumer advocacy groups have reached a settlement that will see rates increase by an average of 9.8 percent from July 1.

NCCI, an industry-backed organization that makes recommendations on workers' comp premiums in South Carolina and 35 other states, had sought a 23.7 percent average increase. The council's figures are a benchmark that private insurers use to set prices.

An average increase means that rates for some professions could increase at a greater or lesser amount than others.

Frank Knapp of the Small Business Chamber of Commerce in Columbia estimated that the smaller increase will save the state's businesses more than $130 million in premiums.

NCCI applied for the increase in April last year. In August, the state Department of Insurance denied the request. A settlement on an increase was reached between NCCI and the small business chamber, the Insurance Department, and the Consumer Advocate of the state Department of Consumer Affairs.

Workers' comp rates affect the bottom line for thousands of business owners across the state. Any South Carolina employer with four or more workers is required by law to buy the insurance, which covers medical costs and some wages for workers who are injured on the job.

Read more in tomorrow's editions of The Post and Courier.