Rise In Comp Claims Severity Hits Construction

While claim frequency in workers compensation has been flat for a decade, claim severity is increasing, and no industry is seeing it more than construction, according to a panel of experts.

‘This is driven by medical advances,’ said Mark Walls, vice president, communications & strategic analysis, for Safety National Casualty Corp. ‘They’re getting better treatment; they’re getting a medevac helicopter to a level one trauma center.’

Accidents that previously resulted in fatalities are now leading to prolonged medical treatment and rehabilitation, he said during a session at the 42nd International Risk Management Institute Inc. Construction Risk Conference.

‘We have seen in our data set a 30% increase over the last three years of claims worth over $10 million,’ said Chicago-based Mr. Walls.

He joined other panelists discussing workers comp issues facing the construction industry, including claims severity, labor force challenges and marijuana legalization.