Workers’ Comp (CONT’D FROM PAGE 1)
board, adjusting for inflation, higher medical expenses and a rising cost of living,” said Morris. “And ever since COVID we're seeing carriers covering a lot more mental health conditions and PTSD.” Yet another danger emanates from Washington. While workers’ compensation is primarily a state driven phenom- enon, that doesn’t mean actions at the federal level can’t affect employer costs. “We’re concerned about the possi- ble negative effects of U.S. trade policy,” said Dennis Tier- ney, Director of Workers’ Compensation Claims at Marsh, a global insurance broker. “Employers who get impacted by tariffs may start cutting expenses, and that often means getting rid of employees. And reductions in force typically lead to an increase in workers’ compensation claims.” Such increases can often be fed by desperation, noted Tierney. People who lose their jobs often look for another source of income, and may find it in the form of back pain or similar condition that developed over the years and that could be deemed an occupational injury. This temptation to assign workplace culpability comes while many states are passing laws reflecting a more lib- eral presumption—a term referring to the automatic deter- mination that certain injuries are work-related, and thus compensable by the workers’ compensation system. It is up to the employer to prove otherwise. Security cameras can help provide a defense against some of these instances. “Having everything monitored is a best practice and a good way to avoid frivolous claims,” said Morris. “Many times, employees will be joking around and not doing the right things on a work site and then claim a work-related injury when the video shows some- thing else happening.” Tariffs may lead to cost hikes for other reasons—esca- lating drug prices among them. “Raw materials for drugs are a big part of medical spend,” said Tierney. “Duties on imported ingredients may result in bigger bills for end us- ers.” Tariffs can also have a deleterious effect on labor costs. A manufacturing reboot in the U.S.—the ultimate goal of the Trump administration tariff policy—may increase the demand for workers, putting upward pressure on wages. “The administration’s restrictions on immigration could lead to the loss of cheaper labor, and thus affect work- ers’ compensation rates which are figured off wages,” said Moore. Finally, trade policy can lead to more hiring of younger workers to fill the ranks of reshored employers. The re- placement of retiring Boomers poses a particular risk. “In five years, we figure that some 25 percent of employees are going to be Gen Zers,” said human resources consul- tant Rachel Shaw. “We are concerned that we may see more injuries as a result, since there is a question mark as to whether they are coming into the workforce with the same skills and training and experience.”
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Len Prazych at 518-366-9017 lprazych@nvpublications.com
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September 22, 2025
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