Workers’ Compensation Insurance

Big Changes in 2013…  Are You Prepared?

Earlier this month, the California Department of Insurance approved workers’ compensation “base” rate increases that are estimated to be 16% higher than 2012 rates.  These rate increases are the result of increased claims costs and legislation (SB 863) passed earlier this year that increases benefits levels.

Compounding the impact of increased base rates is the fact that many insurers will be offering smaller rate credits (discounts) with the final result being premiums 25%+ higher than 2012.  Additionally, some construction classes will see the hourly over/under wage break increase by as much as $3.00.


The best defense is a good offense… One where your broker uses all possible strategies and tactics to negotiate the best terms.  Insurers compete by taking their own base rates and then applying discounts (or surcharges) to arrive at a final rate that they wish to charge a policyholder.  Now more than ever, a  broker must use all available information, knowledge and experience to demonstrate why a particular risk should be given as much of a discount as possible.

Risk Concepts has been successful at achieving final rates that are lower that what the insurers are initially proposing.  We have seen that our tactics are especially effective for our clients and prospects where there is a strong history of safety culture and good claims experience.  Insurers are generally more comfortable with a risk that has been presented by a broker who is well educated, and experienced in representing a specific industry.  As a specialist in construction, Risk Concepts’ fits that description well…

120 Days in advance of your renewal, your broker should explain the strategy they will use to market your risk and what you should expect as the outcome (after all, you need to be able to budget for upcoming project costs).  At Risk Concepts, our strategy includes using marketing software that allows us to determine every California insurer’s base rates and premium discount structure.  This information enables us to focus on the markets that are the most competitive for your exposures, safety culture and claims history.  The outcome of these efforts can have a significantly positive impact on your bottom line.

Call me today at (925) 283-8200 or send an e-mail to  Give me just 5 minutes to discuss your upcoming Workers Compensation renewal, and then YOU can decide if your current broker is representing your interest to their fullest potential…