What’s Happening?
California Insurance Commissioner Ricardo Lara has announced an 8.7% increase in the state’s workers’ compensation pure premium rate, effective September 1, 2025. This is the first increase since 2015 and is meant to address rising costs in the workers’ compensation system.
Why Are Rates Going Up?
The increase is driven by several factors:
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More claims for cumulative trauma (CT) – particularly cases where employees file claims long after leaving a job, often without prior medical treatment.
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Higher medical and legal costs – expenses tied to medical-legal evaluations and treatments have risen significantly.
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Increased use of medical services – including physical therapy, inpatient care, and rehabilitation, all adding to the cost burden.
According to the Commissioner’s report, the cost of handling claims has risen sharply, with insurance companies paying out much more in claims than they collect in premiums.
What Does This Mean for Your Business?
An increase in the pure premium rate means insurance companies will likely raise workers’ compensation premiums. Even if you haven’t had claims, you could see your costs go up when your policy renews.
Why You Should Shop Around
Not all insurance carriers price the same way. Insurance Incorporated partners with over 30 different carriers, each with their own pricing models, risk appetites, and service offerings. This means:
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We can compare multiple quotes to find you the most competitive rate.
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We consider carrier services that can help you reduce future claims and control costs.
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You have options rather than being stuck with a single carrier’s rate hike.
Our Strategies to Help You Save
While we can’t control state-mandated rates, we can help you:
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Find carriers offering better pricing or more favorable terms.
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Implement strategies to reduce your risk and lower claims.
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Get expert advice on managing workers’ compensation challenges.
Take Action Now
With rates increasing, there’s never been a better time to review your workers’ compensation policy. Let Insurance Incorporated help you explore your options and potentially save on your premiums.
📞 Contact us today at 877-428-8778 to get an alternate quote and ensure you’re not paying more than you need to.
