State Fund Opens Up

The California State Compensation Insurance Fund (SCIF) announced November 9 that the 80,000+ employers written direct through SCIF have a new option. They may choose to select an independent broker to represent them through a broker of record letter. Independent brokers “bring significant and lasting contributions through a wide variety...

Why are Work Comp Claims So Costly?

The average cost of an indemnity claim is now over $60,000! Why?  There are many factors as to why costs are increasing so much.  These are but a few: Increased medical costs More medical procedures being requested Early Return to Work is not as available, due to economic times Litigation One of the biggest factors...

MPN’s, Medical Liens, and the WCAB

There has been a huge upturn in the number of litigated claims over the past 2 years in California Workers' Compensation. Now approximately 40-50% of claims are becoming litigated and virtually 100% of claims older than 2 years are in litigation. When I was told this, my initial question was: Why?...

Why Can’t Work Comp Be Easier?

For years, business owners have complained about the same things regarding Workers' Compensation Insurance: Large Deposits High Rates Policy Audits Difficult Payment Plans Aren't these the things that bother you the most about Work Comp? These can be especially bothersome for smaller businesses, who never seem to see the same aggressive offers from Insurance Companies. These...

Speed Kills

I recently met with a trucking prospect whose experience mod took a serious increase from 99 to 128%. The cause of this issue was one smaller claim (total incurred of $3,600) that was left open with more than half of the incurred being reserves. Now, reserve levels should be looked at...

Why are Work Comp Rates going Up?

California Work Comp rates are being raised by most insurance companies. Business owners are in a position of trying to deal with declining revenues and increasing costs. In many cases, payroll reductions have actually driven the total insurance premium cost down, but the actual rates on the payroll you have left is going up....