We all know from experience that when the economy takes a turn for the worse and we head towards the bottom of the business cycle unemployment rises. As it rises we find that workers and employees are far more likely to file fraudulent, fake or questionable worker's compensation claims. Since the large insurance carriers that handle worker's compensation insurance realize this, they are raising rates now to cover their future risks of handling the onslaught of claims.

Increased costs on mandatory workmen's compensation insurance for small business means higher payroll costs and that means cutting back on employees. Since, small businesses employ 75% of our workforce and 10% of all Americans own a small business and if every business cuts one employee, well you can begin to see why this issue is so critical to our Nation's economic recovery right? Why is workmen's compensation insurance so high?

It's mostly because of abuses on the system by fraudulent or questionable claims, further promoted by employment law lawyers driving up the costs to defend and litigate. Many construction companies are paying nearly 17% of their payroll for workmen's compensation insurance now, can you imagine what it will be as it increases. And for an industry like construction which is already been hammered due to the credit crisis and real estate debacle, this could mean the death of many of the companies that are still just barely hanging on.

As if things were not bad enough on small businesses and employers many folks are going to find themselves out of work due to this problem, and many more businesses may fail, leading to further economic decay. Please consider all this.



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