A new report by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) highlights that long COVID remains a significant factor in workers’ compensation claims. For employers, especially in high-risk sectors like healthcare, retail, and manufacturing, understanding this trend is critical.
Key Findings on Long COVID Claims
- 30% of adults in California report activity limitations due to long COVID.
- 40% of hospitalization-related COVID-19 claims involve long COVID, resulting in higher indemnity and medical costs.
- Long COVID claims are significantly more expensive than standard COVID claims, with permanent disability (PD) claims averaging $79,828 and temporary disability (TD) claims at $19,694. This surge in costs is due to longer recovery times and more frequent permanent disabilities from long COVID cases.
Why Business Owners Should Pay Attention
Business owners, particularly in high-exposure industries, need to prepare for the ongoing impact of long COVID on their workforce. This means anticipating increased claims, higher medical costs, and potential litigation. Reviewing your current workers’ comp policy and ensuring it’s equipped to handle long COVID claims is essential. If your industry has seen a rise in long COVID cases, updating your insurance policy to include provisions for higher indemnity payments and extended disability coverage is a smart move. Employers should also ensure they maintain accurate injury reporting protocols and safety measures in the workplace to reduce risk.
Additionally, industries with a high prevalence of long COVID are advised to engage in employee health programs, focus on safe work environments, and educate workers about potential long-term impacts of COVID. This proactive approach may help reduce the frequency and severity of future claims.
Government Response
California’s government has been proactive in implementing measures to address workers’ comp claims related to COVID-19. Although no new specific regulations for long COVID have been announced, the state continues to provide guidance and resources for businesses handling COVID-related claims. Employers should regularly consult California’s Department of Industrial Relations (DIR) and WCIRB for updated guidelines on workers’ compensation and how long COVID claims are processed.
Long COVID in Workers’ Comp Litigation
Long COVID claims are more likely to involve litigation, often requiring allocated loss adjustment expenses (ALAE). The WCIRB report underscores the need for businesses to be prepared for potential legal challenges. Having proper legal representation and insurance coverage can mitigate these risks and ensure smoother claim settlements.
Steps Business Owners Should Take
Review Insurance Policies: Make sure your workers’ comp insurance policy covers long COVID claims adequately, considering the higher costs associated with long-term illnesses.
Enhance Workplace Safety: Implement safety measures, especially for employees in high-risk areas like healthcare and manufacturing, to prevent COVID exposure and reduce future claims.
Monitor Government Updates: Stay informed on California’s workers’ compensation regulations to ensure compliance with state laws and best practices.
Employee Health Programs: Consider setting up wellness programs that focus on long-term COVID recovery and support for employees affected by the virus.
Areas Safe from Wildfire Impact
For business owners concerned about property and workers’ compensation risks in wildfire-prone regions, areas such as San Diego and parts of Northern California tend to experience fewer fires. Knowing where your business stands in terms of natural disaster risk can help in deciding appropriate insurance coverage.
Get Insurance Support from Acrisure
If you’re looking for personal or business insurance in California, including coverage for long COVID or wildfire protection, contact Abdul, a Business Development Manager at Acrisure, at 916-778-5979. Abdul can assist with both business and personal insurance needs, such as home, auto, or life insurance.