Hartford Insurance Says Digital Technology is Changing Workers Comp

As businesses continue to adopt a “digital first” approach, the Hartford Insurance Company says the impact on workers’ compensation will be profound. From safer work environments to the increased use of telehealth, workers’ comp rates and policies will likely continue to shift in the coming years.

Hartford says to look out for five workers' comp trends this year and in coming years:

1. Safer Work Environments
Businesses have been working harder to maintain safer workplaces by improving their risk management plans. This should help to decrease the chances of work-related injuries and reduce the amount of workers’ compensation claims resulting from workplace accidents.

2. A Growing Gig Economy
Independent contractors, freelance writers, contractors in the construction industry, Uber drivers and consultants are all part of the gig economy. Most of these occupations are not covered by workers’ comp. And the number of Americans turning to the gig economy has been increasing in recent years. In 2021, 16% of American workers earned money through the gig economy. Over time, this will likely decrease payroll in the workers’ compensation system.

3. Advancing Technology
Widespread adoption of technology, like telehealth and telemedicine, is expected to become more common in the workers’ compensation industry now and in the future. Telehealth can help provide injured employees with:
• Instant treatment
• Easy access to medication
• Personalized health care
• Time savings by not having to visit the doctor’s office
• Mental health support

This can help injured employees return to work quicker. It can also help reduce their total medical costs and claim costs.

4. COVID-19
State workers’ compensation policies vary. However, many state workers’ comp policies offer coverage for “occupational illnesses” arising from work and exclude “ordinary diseases” like the flu. The COVID-19 pandemic has created a new situation where jobs that were previously not considered dangerous now are. This means that compensation for the effects of COVID-19 will depend on your policy, state and business.

5. Regulatory & Legislative Reform
According to the National Council on Compensation Insurance (NCCI), the 2023 workers’ comp rates are based on pre-COVID-19 premiums and loss data. In 2022, eighteen states have established laws or orders that extend workers’ comp benefits for employees who contract COVID-19 on the job.
The opioid overutilization policy may also impact workers’ compensation trends now and in years to come. This policy aims to prevent the misuse of opioids. With a reduction in opioid usage, this could potentially decrease drug costs for the workers’ comp system.

For more information or help, contact the Insurance professionals of EPIC’s CRA ProRental™ Insurance Program. Call us at: 800.234.6363 or email us at prorental@epicbrokers.com.