June 24, 2003 9:22 AM

Worker's compensation insurance costs are soaring
Posted by Jason Butlerat 9:22 AM

The New York Times reports on yet another burden for employers which prevents them from hiring: soaring costs for worker's compensation insurance.

Prices are escalating, government and industry officials said, because of rising medical and legal costs; a recent devastating price war by insurers; and, many insurers and business executives say, a significant amount of fraud.

In the last few years, the cost of almost all kinds of insurance has been rising sharply. But workers' compensation insurance, which pays for treatment of on-the-job injuries and lost wages, is a particular problem because its purchase is mandatory. Businesses cannot trim their workers' compensation coverage to save money because, every employee must be fully insured.