Insurers are not mandated to provide this coverage. As an inducement, the government reimburses insurers for war-related claims.
Labor Department officials said they had no cost estimate for reimbursements of Iraq-related claims, but given the maximum payment of $1,030.78 per week and the number of injuries and deaths, it could well climb into the multi-millions. In past years, annual reimbursement costs under the War Hazards Act have ranged from $1 million to $2 million.
Rates have ranged from an early low of $10 per $100 of an employer's payroll to as much as much as $40 per $100 of payroll in recent months. That means an employer with a million-dollar payroll would pay between $100,000 and $400,000 in premiums.