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Workers’ Comp: Will You Be Paying More in 2017?

By David Freeman, Director, Commercial Sales

clock August 22, 2016 at 10:00 AM

Beginning in September, companies across California will learn whether they will be paying more for workers’ compensation insurance next year.

For some doing business in the Golden State, it will be an unwelcome surprise. The increase could be significant.

The potential rate changes are due to a rule approved last year by California Insurance Commissioner David Jones. Beginning in 2017, the formula to determine an organization’s “experience modification,” the rate used to calculate workers’ comp pricing, will change.

The rationale for the change was to level the playing field for small businesses. Previously, the one-size-fits all formula had the potential to unfairly penalize smaller organizations.  A few claims had a dramatic affect on their workers’ comp premiums, a consequence usually not seen with larger businesses.

For many, the new formula will likely result in little change in their workers’ comp premium. However, it’s likely that some large and small employers with a higher frequency of claims will see a dramatic impact.

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Topics: Property + Casualty, Market Trends, Workers' Compensation

Breaking News: Cal/OSHA's TICF Assessment Slated to End June 30, 2014

By Jennifer Reyes, Risk Consultant

clock April 21, 2014 at 2:01 PM

Employers are urged to continue investing in workplace safety

April 21, 2014 – The Department of Industrial Relations has announced they will suspend the high profile Targeted Inspection and Consultation Fund’s (TICF) yearly assessment program.

The Cal/OSHA TICF is part of the workers compensation insurance reform legislation passed by the California Legislature in July 1993. Under the program, insured employers with an experience modification rating (ExMOD) of 125% or higher were subject to an assessment penalty based on the annual payroll for the assessment year. The Department has not billed insured employers for TICF assessments after the 2012 assessment year.

The Division of Occupational Safety and Health (DOSH) states the Labor Code Section 62.9, the legal mandate for the assessment, will be repealed as of June 30, 2014.

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Topics: Breaking News, Workers' Compensation

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