Do appraisers value a company’s historic workers comp claims?

BVWireIssue #48-2
September 20, 2006

“I just had an interesting meeting with a consultant from the Washington State Workers Compensation Department,” says former BVR controller Ken Becker, CMA. “He emphasized how accidents today impact our insurance rates for years to come, and also reflect the culture we have regarding safety. It made me wonder if, in doing a business valuation, the experience rate of workers compensation insurance is ever valued into the process, both as a reflection of future insurance cost to that business, and as a reflection of the safety culture, which would be hard for a new owner to change quickly.”

Do you have any insight or experience on valuing workers compensation claims? Let us know; email the editor and we’ll feature your response(s) in future issues of the BVWire.

Please let us know if you have any comments about this article or enhancements you would like to see.