Liberty Mutual Pulls Out of NJ for Workers' Compensation
Posted By Levinson Axelrod, P.A.
According to a June 12, 2015 article in the Boston Globe, Liberty Mutual will be de-emphasizing Worker’s Compensation as part of its business. Liberty Mutual is the 2nd largest Worker’s Compensation carrier in the State of New Jersey, which covers injuries for thousands of employers. This Boston company started a century ago insuring railway, shipbuilding, and tannery workers hurt on the job. According to the article, its Workers’ Compensation premiums have decreased by more than a third since 2012. However, Liberty Mutual’s overall profits have grown since it began reducing its Worker’s Compensation business. In 2011, the insurer earned $284 million. That rose to $829 million in 2012, $1.7 billion in 2013, and $1.8 billion last year, according to the company’s annual reports. Rather than writing new policies, Liberty will shift into claims management for other carriers in New Jersey. The company claims that the decision is due to rising medical costs, and the nature of long-term payments of Workers’ Compensation benefits.