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Labor market shifts are reshaping small business workers’ compensation claims
In 2025, NCCI reported a 91% calendar year combined ratio and a 2% decline in claim frequency, but the article warns that pressures are building as labor market conditions change.
Risk & Insurance reports that the U.S. workers’ compensation insurance market has benefited from strong underwriting results, with NCCI data showing a 91% calendar year combined ratio in 2025 and a 2% decline in frequency.
The outlet says that even if the broader market picture remains supportive, claims can still pressure small businesses at multiple points in a worker’s experience. It highlights newer workers facing more frequent injuries due to unfamiliarity with job risks, while more-experienced workers may experience injuries complicated by comorbidities that can delay return to work.
Risk & Insurance also notes that carriers have been expanding recovery options beyond a traditional all-or-nothing approach to returning to work. It points to models that enable employees to work modified duty or perform nonprofit work to regain functionality before reentering their normal roles, which the outlet says may help manage indemnity dollars and shorten claims.
The article adds that income, medical and death benefits can be valuable to businesses and workers, but small business owners may not monitor coverage day to day. It argues that agents can play a role by understanding what different carriers offer, and it cites training and mentoring approaches, including job mentoring and buddy systems, to help reduce gaps for new workers.