Workers' Comp Premiums & Government Taxes Roll Downhill
I received the following "news" from our workers' comp broker making me aware of possible significant increases in workers' comp premiums in CA. Medical costs have risen dramatically causing some insurance companies to pay out more than they got paid in premiums last year.
Thus this warning:
The Workers' Compensation Insurance Rating Bureau in California (WCIRB) recommended a 22.8% recommended increase for policies that will be written or renewed January 1, 2010.
Steve Poizner, the California Insurance Commissioner, opposes this proposed rate increase, citing the fact that California employers simply cannot afford this increase given the weakness of the California economy and the high unemployment in the State right now. "This effectively would be a tax on every employer in the state of California to cover the cost of workers' compensation insurance.