California Ranked the Worst State For Workers Compensation Premiums | Insurance Incorporated Skip to main content

California Ranked the Worst State For Workers Compensation Premiums

By February 4, 2015June 8th, 2020Insurance

In a recent list put out by the Oregon Department of consumer and business services California is ranked as having  the highest premiums for workers compensation premiums.

It is critical that employers choose a professional agency with expertise in workers compensation insurance that can assist them with not only obtaining the most competitive quotes, but also providing them with the tools they need to prevent claims , fight fraud and in selecting a carrier that is aggressive on fighting fraud.

Injured Worker

The workers compensation insurance rating Bureau researchers studied the influencing factors driving recent claim frequency based on the most up-to-date data available. The WCIRB’s principal findings include:

  • California indemnity claim frequency has continued to increase

  • The number of late reported indemnity claims continues to increase, whereas the percentage of medical only claims reported after 18 months is generally remained stable since 2007

  • Approximately 13% of indemnity claims are estimated to involve a cumulative injury in 2013 compared to approximately 8% in the 2005 to 2007 period

  • Growth in cumulative injury claims beginning in 2009 has been concentrated in claims involving more serious injuries and multiple injured body parts. These claims have increased significantly since 2010.

  • The number of cumulative injury claims involving multiple insurers and the proportion involving attorney representation has increased in recent years.

  • The 2010 indemnity claim frequency increase was generally experienced across all California regions. Since that time, the increases have been concentrated in the Los Angeles area. Indemnity claim frequency increase in estimated 9% in the Los Angeles basin from 2010 to 2013. Los Angeles area has also experienced significantly higher numbers of humility of injury claims and claims involving multiple body parts than other regions of California.

California’s workers compensation system is broken and antiquated and opens the door for abuse and fraud. Unless employers begin to contact their state representatives regarding increasing costs for workers compensation insurance and the abuses taking place, California business owners will continue to pay the highest rates in the nation for workers compensation insurance . These increase costs lead to loss of jobs in California and loss of increased wages and benefits for their employees.   For more information on how you can fight fraud contact our office.

 

Close Menu