Business Group Says Presumption Order Could Increase Costs 238%

Tuesday, July 28, 2020 | 0

A business group has reacted swiftly to Gov. Ned Lamont's COVID presumption order, saying it will cost employers dearly long after the pandemic has run its course, potentially increasing workers' compensation costs by 238%.

Eric Gjede

“It will increase your insurance costs for at least three years due to paying claims for workers who contracted the virus — including those that may have ignored social distancing measures off the clock or ignored travel restrictions,” said the Connecticut Business & Industry Association, according to a local news report.

Lamont last week signed the executive order, providing a presumption that most essential workers who fall ill from the disease contracted it through work duties. The presumption applies only to workers who caught the virus between March 10 and May 20 of this year.

The business association said one analysis suggests that employers' comp costs could quadruple because of the governor's order.

“It’s a huge slap in the face,” CBIA’s Vice President of Government Affairs Eric Gjede said. He conceded that the 238% figure was “just an estimate, but we feel it’s a good predictor of what we’re facing.”

Democratic lawmakers weren't buying it.

“The CBIA is spreading incorrect figures,” state Sen. Matt Lesser, D-Middletown, told the news outlet. “The actual costs would be minimal.”

Some recent actuarial reports have said preliminary data around the country show that the cost of COVID claims may be lower than feared, in part because many workers are opting for other forms of paid leave, many are avoiding hospitals, and some are recovering within two weeks.

The CBIA’s position “is hard to understand, and perhaps is even a tad shameful,” Lesser said. “It doesn’t take a rocket scientist to see that when you force workers to do their jobs during a global pandemic, they may get sick — and there are costs associated with that.”