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North Dakota's workers comp claims rise less than expected

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(Reuters) — The number of workers compensation filings in North Dakota’s oil patch rose less than forecast from January through March, leading state officials to curb projections for total fiscal year filings, data released on Wednesday showed.

The projected decrease in filings surprised officials and industry executives across the No. 2 U.S. oil producing state as expectations for an increase were high with the recent slide in crude prices.

For January through March, 5,845 North Dakota workers filed workers comp claims. That was fewer than each of the first and second quarters of the state’s fiscal year, which runs from July through June, according to data from North Dakota Workforce Safety & Insurance.

North Dakota operates its workers comp program through WSI, providing coverage for businesses when employees are hurt on the job.

The state has no private marketplace for workers compensation insurance, making WSI the only option for employers seeking coverage, which is mandatory.

Crude prices are down roughly 40% since last summer, leading North Dakota oil producers to cut budgets and cull some staff. The most common scenario has been reduction or elimination in overtime for most workers.

Indeed, many workers who as recently as last year worked more than 70 hours or more per week in or near the state’s oilfields have seen time sheets crimped to a standard 40 hours.

Given the reduction many workers had been expected to file more claims for injuries, minor or major, rather than work through the pain. The WSI program typically covers two-thirds of a worker’s gross salary.

“As the oil industry slows down, you do get more workers who somehow show up with a hurt back or other nagging malady, which means they often file a workers comp claim,” Eric Bolquist, president of Travelers Cos. Inc.’s oil and gas division, said in a recent interview. The company offers workers compensation insurance in other states and oilfield insurance inside North Dakota.

For the full fiscal year, WSI estimated 25,451 workers comp filings, down from a previous expectation for 26,486 filings. WSI changed the outlook to “positive” from “watch,” meaning the number is not expected to rise.

Oil production fell three out of the first four months of this year, the latest period for which data is available.

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