The rate that employers pay for California workers compensation rates is computed on a variety of things. Two major things are the companies’ total salaries paid and the number of claims filed by that particular company.
The Ca workers comp rates are also computed by the state to define when base rates need to be adjusted. Often this decision combines the increasing cost of providing medical services to workers injured on the job and the total number of claims filed from throughout the state.
It is in any company’s best interest to strongly encourage safety in the workplace to keep the number of injuries with Ca workers comp claims down. The more claims the higher the California workers compensation rates are for the individual company.
In April of 2012 it was reported that the commission would recommend base rates rise 7.7% above the rate that the group proposed just six months ago. This would mean that the Ca workers comp rates would increase for all companies state wide regardless of their safety record (how few claim were filed).
What this will mean is that policies that renew on July 1st an average pure premium rate will be two dollars and fifty-one cents per every one hundred of payroll. The San Francisco based Rating Bureau is making the rate increase due to the worsening claim results and forecasts of lower wage growth throughout California.
There are companies that are offering an alternative to standard state mandated Ca workers comp. They say that they can offer basically the same coverage at a savings of a great deal.
NCCI or the National Council on Compensation requires employers to have liability insurance to cover employees that are injured at work. They are not required to have the insurance sponsored by the state though. As long as they have liability insurance equal to the level of coverage the Ca workers comp the state mandates.
If a company can get liability insurance from an independent company at reduced rates, it will meet the mandate for employee coverage. It does companies good to shop around for the best rates they can find. As long as the coverage meets the standard the state requires, then the California workers compensation rates can save companies literally thousands of dollars every year.