Workers’ Comp Mega Claims Top $1 Billion Annually Amid Rising Costs and Frequency

Mega workers’ compensation claims, defined as those exceeding $2 million, are on the rise, with annual costs now surpassing $1 billion. A recent study by workers’ comp rating bureaus highlights an increasing frequency of these claims, which have grown steadily since 2013. While they make up less than 0.1% of total claims, these cases represent over 2% of all loss dollars.

The study reveals that construction leads other industries in mega claim frequency, experiencing rates double those of manufacturing, transportation, and retail sectors. Head and brain injuries, motor vehicle accidents, and catastrophic construction incidents contribute significantly to claims over $5 million. Conversely, office and clerical injuries exhibit slower emergence patterns but remain relatively infrequent.

Rising costs associated with mega claims stem from advanced medical treatments, long-term care needs, and inflationary pressures on non-scheduled services. Promising mitigation opportunities include adopting workplace safety technologies and automation to reduce the severity of workplace injuries.