Does it seem like your costs for Workers Compensation just seem to go up every year? That’s because they have. Workers Compensation rates in CA have seen rate increases of up to 50% since 2005. The steady increases have happened for many reasons: Rising claim frequency, pure premium loss rate, several consecutive years of underwriting losses, increasing litigation, and medical inflation. But, I don’t have to tell you that. You know the bad news.
How can you continue to compete and make a profit in the face of all these increases? Does the system itself keep you up at night? I mean, when you have a lousy year in losses and your broker comes to you with the increases at renewal, what’s his incentive to help you lower your costs? Doesn’t he get paid MORE when you pay more? If the insurance company makes you come up with more deposit, more premium, and seems unresponsive when you do have claims how can you win in this environment?
Here’s a crazy idea. What if there were partners who worked with you to lower your losses? What if they were able to find common-sense solutions that lead to a safer worker environment, and sought to keep claims from happening in the first place? What if they actually care about your claims and proactively kept them from going to litigation? What if they would reward you when you have a great year by offering to pay back up to 25% of your worker’s compensation bill when you have no claims?
We have access to alternative markets that allow us to do just that. Last year alone almost 98% of their client companies received back all or part of their 25% rebate. They were able to keep their workforce safe and productive. They got a check at the end of the year for being proactive in safety. Their clients are able to control the costs associated with Workers Compensation. They are finding ways to win in a system rigged against them. What about you?