diciembre 11, 2025
Rising Costs, Cumulative Trauma, and the Path Forward
Navigating the Hardening Workers’ Comp Market
By Byron Johnston, CIC
The hardening of the workers’ compensation market is driven by several factors:
- Medical Inflation: The rising cost of medical care has a direct impact on workers’ compensation claims. Treatments, medications, and therapies are becoming more expensive, increasing the overall cost of claims.
- Cumulative Trauma Claims: CT claims, which involve injuries that develop over time due to repetitive stress or exposure, are on the rise. These claims are complex, often involving multiple employers or insurance carriers, and can be costly to resolve. For example, conditions like carpal tunnel syndrome, tendonitis, and even psychiatric disorders are increasingly being linked to workplace activities.
- Economic and Workforce Changes: A robust job market and rising wages mean higher premiums, but they also bring challenges. The gig economy and remote work have introduced new risks and complexities in determining coverage and liability.
- Litigation and Fraud: Increased litigation and fraudulent claims add to the financial strain on the system, prompting insurers to tighten their policies.
The Role of Cumulative Trauma in Rising Costs
Cumulative trauma claims are a significant contributor to the hardening market. These injuries, which develop over time, are particularly challenging because:
- They often require extensive investigation to determine the cause and timeline of the injury.
- The statute of limitations can be difficult to apply, as symptoms may not appear until years after the exposure.
- Multiple employers or insurance carriers may be involved, complicating the claims process.
For businesses, the rise in CT claims means higher premiums and the need for more robust workplace safety programs. For employees, it underscores the importance of early reporting and documentation of symptoms.
Navigating the Hardening Market
Both businesses and individuals can take steps to mitigate the challenges of a hardening workers’ comp market:
For Businesses:
- Invest in Prevention: Implement ergonomic assessments, safety training, and wellness programs to reduce the risk of injuries, particularly cumulative trauma.
- Work with Experts: Partner with experienced brokers and legal advisors to navigate renewals and ensure adequate coverage.
- Monitor Claims: Proactively manage claims to identify and address potential issues early.
For Employees:
- Report Early: Promptly report any symptoms of injury to your employer to ensure timely intervention.
- Seek Legal Advice: In complex cases, such as CT claims, consult with a workers’ compensation attorney to protect your rights.
- Document Everything: Keep detailed records of your work activities, symptoms, and medical treatments.
What Does the Future Hold?
While the current market is challenging, there are reasons for cautious optimism. Advances in technology, such as artificial intelligence, are expected to improve claims processing and fraud detection, potentially reducing costs over time. Additionally, as businesses adapt to the new landscape, we may see a stabilization of premiums and a more balanced market.
However, the rise in cumulative trauma claims and ongoing medical inflation suggest that challenges will persist. Stakeholders must remain vigilant and proactive to navigate this evolving environment.
In conclusion, the hardening workers’ compensation market reflects broader economic and societal trends. By understanding the factors at play and taking proactive measures, businesses and individuals can better manage the challenges and uncertainties of this dynamic landscape. Teague is here to help you navigate these complexities, offering expert guidance and tailored solutions to ensure you’re prepared for whatever comes next.