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Industry Experts Weigh In: Workers’ Compensation Trends for 2023

Businesses small and large will be facing new challenges and issues this year when it comes to providing workers’ compensation insurance for their employees. Here is what WorkCompWire, an online information source for workers’ comp and related issues, has to say about how certain trends could impact businesses in 2023.

More Construction Companies Look to Women to Help Fill Employment Gap

Insurance agents and brokers have seen firsthand how their business clients in certain industries have been impacted by the ongoing labor shortage. One industry that has been particularly hard it is construction. In fact, experts believe the construction industry has experienced a near-crisis-level shortage of workers and is now facing a potential deficit of approximately 1 million construction professionals in 2023.

Implementing a Direct-to-Consumer Insurance Model: What’s Holding You Back?
Today’s consumers want insurers to offer them the same simplicity, accessibility and options they’ve become accustomed to with other business sectors. According to a PwC study, people shopping for insurance want quotes and prices when they want, and by way of the platform they choose – but also want access to help from an insurance professional when they need it. So, how does the insurance industry make this happen? Enter the direct-to-consumer (D2C) model.

Per the California State Contractors License Board, limits on California Contractor License Bonds will increase to $25,000 effective January 1, 2023.

The numbers don’t lie. Cyberattacks on small-to-medium-sized businesses (SMBs) are growing in severity and frequency.  In 2021, according to the financial information website Fundera, SMBs experienced a whopping 424% increase in cyber breaches during 2020, costing businesses more than $2.2 million in losses and causing 60% of companies to permanently close their doors within six months after experiencing an attack.

Construction has traditionally been a male-dominated field. However, over the past several years, the sector has experienced a growing number of women joining the industry and working in a variety of roles. Today, women make up 11% of the construction industry, equating to over 1 million women in the field of construction.

Today’s digital technology is driving massive changes in the insurance industry as insurers aim to increase work efficiency and productivity while improving the customer experience at the same time. One technological advancement that has become key to helping agents remain more competitive and retain more business is optical character recognition, or OCR.

For contractors, builder’s risk insurance provides protection from damages and delays while a project is under construction covering losses to materials, supplies and equipment on the job site until the project is complete.

Omicron Variant Continues to Impact Small Businesses
Still recovering from the financial impact of the COVID-19 delta variant, small businesses are now facing another wave of the pandemic: the omicron variant. In an already challenged economy, the rapid spread of omicron has a rising number of small businesses struggling just to keep the lights on and the doors open. In fact, the U.S. Census Small Business Pulse Survey reports that in the first week of the year, small businesses reported a staggering 33% decrease in revenue due to issues related to the increased rate of omicron infections.

Many industries are experiencing challenges in attracting and retaining qualified workers. As a result, employers are having to reevaluate their business practices in an effort to appeal (and hold on) to talented employees. To help solve this issue, many employers are increasing their dependency on contingent workers.