Workers’ compensation rates in California will be expected to increase by 6.7% in 2015
As recommended by the California Workers’ Compensation Insurance Rating Bureau (WCIRB), the state’s pure premium workers’ compensation will increase by 6.7% beginning in 2015.
The WCIRB has submitted rate filing to the California Department of Insurance to request that pure premium rates increase from $2.68 per $1,00 of payroll in January of 2014 to $2.86 per $100 in January of 2015.
According to the WCIRB, these insurance cost increases are necessary due to increased medical costs, high levels of indemnity claims (for example, Los Angeles County indemnity claims have increased by 19% in the last 3 years) , and lower than expected California wage growth.
How to Avoid Major Cost Increases for Your Business’ Workers’ Compensation Policy
If you notice that your premiums are set to increase at renewal for your workers’ compensation insurance, then it is a good idea to shop around. There are plenty of workers’ comp insurance carriers in California, and some will provide better coverage for your cost than others. Which insurance carrier is best for your company depends on the specific risks associated with your business.
It is a good idea to reach out to a competent insurance agent who handles workers’ comp. As long as the agent is independent (not associated with any one insurance carrier) he or she will be able to help you look at pricing from all the carriers at the same time. This reduces the time and energy it would take for you to shop around on your own and allows you to make the most educated decision for which policy is best for your business.