Lower Your California Workers’ Compensation Rates
How are my California Workers’ Compensation Rates calculated?
The Workers’ Compensation Insurance Ratings Bureau (WCIRB) makes recommended rate changes based upon a complicated formula involving multiple factors. They then give this information to the insurance companies who adjust their rates accordingly.
The insurance companies use these number as a baseline for each industry. They then take your industry rate and use information about your company to calculate your experience modification rate. This is the rate that will determine how much you will pay for your premiums.
For more information on experience modification, click the exp. mod button on the sidebar.
Why are California Workers’ Compensation Rates going up?
Recently, in January 2009, the WCIRB raised rates by 8.9% and as of March 2009, they have recommended a staggering 24.4% rate increase that will be effective July 1st, 2009.
Their reasoning for such a huge rate change was based on several factors the biggest one being a court ruling affecting the way injured workers are treated. This has become a common excuse to justify higher rates.
I’ll let you in on a little secret, the insurance companies are making billions of dollars off of businesses in California. The increased rate changes only further pad the pockets of these insurance companies.
What they don’t want you to know is how badly managed and wasteful these companies are.
Why are my California Workers’ Compensation Rates so high?
FACT: 75% of businesses overpay or have overpaid on their workers’ comp rates.
FACT: Insurance companies make frequent calculation mistakes.
FACT: Insurance companies don’t care about your business.
How can I lower my California Workers’ Compensation Rates?
You probably have heard how to lower your rates by your broker before. Simple things you can do is put in place safety protocols and procedures and create a light duty return to work program for injured workers.
The fact of the matter is, this won’t do a whole lot in reducing your premiums and will take years for you to see much benefit from it.
The most effective means of reducing your workers compensation costs is by having a specialized audit done by an independent company.
How does it work?
By reviewing your policies we can find mistakes that were made by the insurance companies and have it corrected from as far back as 7 years.
How much does it cost?
All audits are done on a contingency basis and won’t cost you any money up front. If there is no recovery there is no fee.
I am already busy and don’t have time.
The amount of time it will take to get together the necessary paper work is minimal. There are only a few things that you need to put together for us to start the process.
How much money will I recover?
Typically we recover anywhere from 10-15% of your total premium.
Let’s say you pay $100,000 a year in premiums. 15% is 15,000, multiply that by 7 years and that’s $105,000 of savings.
Not to mention the money you will save in the future from lower rates.
Are You Ready to Cash in Your Refund?
