HR Management & Compliance

Employment Law Tip: Workers’ Comp Costs Down—Are You Getting the Best Deal?

Last week, California Insurance Commissioner Steve Poizner announced that insurers’ workers’ compensation costs have plummeted by 70 percent since the workers’ comp reforms of 2003 were implemented—and as a result, pure premium rates will remain unchanged for now. Poizner noted, though, that insurers should continue to pass on the cost savings to businesses in the form of lower rates.


Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.


Of course, this is good news for California employers. But your rates may still be higher than you’d  like—and insurers may not be offering you the best deal—if your organization has a poor safety record. Here’s a 4-point plan you can follow to help you get your workers’ comp house in order and possibly qualify for a rate reduction:

  • Review. What safety measures have you already implemented? What are your losses? Review past claims to identify patterns and mistakes.
  • Commit. Is safety a top priority for management? Brokers and insurers may be reluctant to work with prospective clients who aren’t committed to safety.
  • Inspect. Are your workplace hazards related to small clean-up issues, such as debris, minor spills, or access problems? Or do your hazards relate to more systemic work-process issues such as those that could cause costly repetitive stress injuries?
  • Analyze. How much money is needed to correct the problems you’ve identified? What savings are possible? Compare your premium rates to the average for other employers in your industry to get a sense of what you could be paying if you can get your safety house in order.

Additional Resources:

Understanding Workers’ Compensation: A Guide for California Employers (Start your guest access and get this now)

Workers’ Compensation Sample Policy (Start your guest access and get this now)

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