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MONTPELIER — Workers compensation insurance rates will decrease this year, saving Vermont employers more than $11 million in premiums, the Scott administration announced Wednesday.

The reduction, which takes effect April 1, marks the seventh straight year the state has lowered rates – a net reduction of nearly 47 percent in workers’ compensation premiums from 2016, according to an announcement by Gov. Phil Scott and Department of Financial Regulation Commissioner Kevin Gaffney.

“Reducing the costs of doing business in Vermont is critical if we hope to attract and retain employers in our state, and this will make a difference,” said Scott. “I want to thank our team at the Department of Financial Regulation for overseeing the rate approval process, ensuring workers are well-protected while their employers obtain the best coverage at the most cost-efficient rates.”

Employers purchase workers compensation insurance through one of two markets: the voluntary market, where 90 percent of Vermont employers obtain coverage, and the assigned risk market. Loss costs are the primary component of workers’ compensation rates.

In the voluntary market — also referred to as the open competitive market — loss costs will decrease by an average of 6.7 percent. In the assigned risk market — the market for employers unable to obtain coverage in the voluntary market — rates will decrease by an average of 6.9 percent.

According to the announcement, the continued rate relief in the assigned risk market is good news for new businesses, which are often required to obtain coverage through that market thanks to a lack of a claims history.