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WORKERS' COMPENSATION Chomp Comp: The Small Business Guide to Lower Workers' Comp Premiums By Barry Spurlock & Keith Wertz. Published by Lighted Path Publishers, Louisville, KY. 2008, paperback, 286 pp., $34.95. ISBN 978-0979712722.
Chomp Comp targets small business owners with fewer than 100 employees. Both authors work in the loss control function with a midwest insurance company and, thus, are intimately familiar with the needs of small businesses. The authors observe how challenging it can be for small businesses to succeed. They note that more than half the people employed in the private sector work in businesses with fewer than 100 employees, and only 9% of private-sector employers have more than 20 employees. Statistics indicate that one major challenge for small businesses is that less than 50% of them remain in operation within 5 years of inception.
On the other hand, small businesses must play by the same rules as large corporations. Furthermore, there is a natural and built-in bias against small business with regard to insurance and workers' compensation premiums. This probably does not seem fair to the small business owner.
The authors explain that the law of large numbers influences the experience rating process. Experience rating is used...