Business Insurance

July 26, 2012

The average duration of workers compensation temporary total disability claims benefits increased during the first half of 2011 in correlation with the struggling economy, according to a study by NCCI Holdings Inc.

The Boca Raton, Fla.-based ratings and research organization said Thursday that the average duration for TTD indemnity benefits was 149 days in the first six months of last year. That compares with 147 days in 2010 and 144 days in 2008, the first full accident year after the Great Recession began.

“TTD duration, like the unemployment rate in many states, did not drop right after the recession, but remains at a higher level than it was prior to the recession,” NCCI said in the analysis of 2.6 million TTD and permanent partial disability claims in 45 states between 1998 and June 2011.

Claims from contract workers, such as roofers, had the highest duration of any industry group, NCCI said, because employees in that sector tend to experience more severe claims than other industries.

Rising temporary total disability durations mean rising experience modifications for employers. An easy way for employers to recoup some of their money from higher workers comp premiums resulting from poor claims experience is workers compensation audit.