Thursday, September 19, 2013
Workers Comp Insurance Rates Set To Go Higher Again
This past Friday the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) submitted another pure premium rate filing to the Insurance Commissioner. The new rate proposed is $2.70 per $100 of payroll and would be effective January 1, 2014. This increase represents an approximate 7% increase from July 2013 and 17% over January 2012. You might recall in 2012 the Pure Premium Rate spiked up 30% in that year.
The cost of doing business in California continues to rise and businesses must anticipate, and be prepared for, that reality. Keep in mind that the increase in the pure premium rate is just one of several factors affecting insurance premiums. It is a good idea to contact your broker now to determine ways to mitigate any increases you may be facing.
As I pointed out in my posting in November 2011, you must always consider your costs at the price they will be incurred when you are performing your work, not at the time of the bid. Insurance increases, as well as anticipated materials prices or other increases, need to be considered when preparing bids.
Although these increases never come as good news to the market, I was reading the 2011 posting again wherein I noted in July 2003 the rates were $4.80 per $100 of payroll. It’s good to keep things in perspective.