Worker's Compensation-Expect Large Increases

Just when you thought things were bad enough, more potential bad news is looming. On March 18th, the Workers Compensation Inspection Rating Bureau (WCIRB) recommended that worker's compensation rates need to be increased 24% in order to cover the cost of anticipated claims. The WCIRB gathers all the claim and payroll information for each class of business in California and sets guidelines for rates. They also project where rates and expenses will be each year. This is just a recommendation and each carrier can revise their rates as they see fit, but based on this reccomendation it is likely that workers compensation rates will have large increases at your next renewal. You may want to start the dialogue with your insurance broker earlier this year so you know what to expect. Also, if you are estimating projects this is something you will want to keep in mind. Good luck.