Are your workplace safety programs keeping up with emerging workers’ compensation risks? Here a look at the evolving trends that are impacting employers’ workers’ compensation insurance loss experience.
Trend #1: Extreme Weather
According to CNN, multiple workers died when Hurricane Helene flooded a factory in Tennessee in 2024. NBC News says six workers died when a tornado struck an Amazon warehouse in Illinois in 2021. In both cases, the companies were criticized for allegedly failing to prioritize worker safety in the face of known threats.
Extreme storms aren’t the only threats to worker health. Heat-related illnesses have also been a growing concern. According to Safety+Health, recent research from the WCRI found that 90% of heat-related claims occurred in temperatures that exceeded 80° F, and 56% occurred in temperatures that exceeded 90° F. Young workers and workers who have been on the job for less than two months have the highest rates of injuries. OSHA has published a proposed heat rule that could impose employer requirements for when temperatures reach 80° F.
Trend#2: Mega Claims
Two somewhat contradictory reports have emerged. OSHA says that workplace deaths are down, from 38 worker deaths a day in 1970 to 15 a day in 2023. Worker injuries and illness are also down. In 1972, incidents occurred at a rate of 10.9 per 100 workers. In 2023, the incident rate dropped to just 2.4 per 100 workers.
Nevertheless, Risk & Insurance says that mega workers’ compensation claims have increased. Recent research shows that mega claims – defined as those exceeding $2 million – account for just 0.1% of total claims but more than 2% of total loss dollars. Furthermore, the frequency of mega claims has been rising steadily since 2013 across all industries. These claims typically involve significant medical expenses, prolonged recovery times and extended periods of lost time from work.
Trend #3: Mental Health Injuries
According to Insurance Journal, New York has expanded workers’ compensation coverage for mental health claims to all workers as of January 1, 2025. As a result, workers in the state can now file claims for certain types of mental injuries related to extraordinary work-related stress, something that was previously only possible for first responders experiencing post-traumatic stress disorder. This is part of a larger trend in which many states are providing coverage for first responders and sometimes workers in other occupations. According to Insurance Business, the NCCI tracked 64 bills related to workers’ compensation for mental injuries in 2024.
In addition to the trend of expanding coverage for mental health injuries, more workers’ compensation professionals are recognizing the importance of mental well-being in worker outcomes. Research published in the Journal of Occupational Rehabilitation found that psychological distress among injured workers is high, with 27.5% of workers with musculoskeletal injuries reporting moderate psychological distress and 14.0% reporting severe psychological distress. However, most of these workers did not access mental health services.
Is Your Workers’ Compensation Insurance Program Keeping Up?
A robust workers’ compensation program can improve outcomes while controlling costs. Find out how Tangram’s industry-tailored risk management services can help you avoid injuries, and our nurse triage services can ensure that claims get off to a good start. Contact Tangram to learn more.
