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8/10/2012 - Workers' compensation claims drop

Workers compensation claims have fallen.

Employees' reliance on their businesses' workers' compensation insurance coverage declined somewhat last year, according to a new report.

NCCI Holdings indicated that workers' compensation claim frequency fell last year by a modest 1%, this after rising for the first time in 10 years in 2010. In that year, claim frequency rose 3%. Before that, 1997 was the last time claim frequency increased on a yearly basis.

Researchers noted that the dichotomy between last year's and 2010's numbers suggest economic factors may have played a role, saying the 1% decline in 2011 "suggests that the 2010 uptick may have been the result of recession-related factors such as an increase in new hires as the recovery began to take hold and a possible influx of small lost-time claims."

Something else that may have factored into the drop in claim frequency was a noticeable drop in claims submitted by companies in the construction industry, as the sector has decreased considerably in the wake of the recession.

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