Commissioner Approves 16% Workers’ Comp Rate Increase
2012 December 4.
The Department of Insurance and Commissioner Dave Jones announced Friday the approval of rate increases as recommended by the Workers Compensation Rating Bureau. The increase affects rates for January 1 workers’ compensation policies. The announcement states that the rate increase is only 2.8 percent more than the industry average, but an evaluation by the Workers Comp Executive (WCE), a private publishing company, shows that this “statistic” as presented by the Department of Insurance is somewhat misleading. That’s because, according to WCE, it uses rates that were in effect as of November 9, 2012, not rates that were in effect Jan. 1, 2012. Using the rates in effect last January, WCE calculated that the increase in rates from January 2012 to January 2013 is actually 15.64 percent. This rate is the “pure premium” rate increase and relates to actual loss payments and expenses. It does not include expenses related to other insurance company costs such as marketing, operations and more.
In order for companies to keep pace with inflation, they would need to include costs in these areas as well. Bottom line-rates will go up significantly for almost all businesses in California. How do you take control of this situation? Western Growers Insurance Services recommends that customers work with their insurance representatives to secure quotes from several viable companies rather than sticking with one carrier. Secondly, be patient. Due to the late approval of rates from the Department of Insurance, insurance companies are going to take longer to get quotes to customers. It may be late December before some companies are able to get quotes completed. Patience and persistence may be worth thousands of dollars to a company in this unique situation. Finally, work with your insurance representative to retain more information for your insurance carriers. This will help you to secure competitive quotes from a larger number of insurance carriers.
WGIS has a team of quality workers’ compensation providers - and with all of the required information can secure a quote in just a few days. To find out how the WGIS team can help you, please contact Greg Nelson, director of commercial lines at (949) 885-2287.
Farm to Food Bank Month – You Can Help Make a Difference
2012 December 4.
The season of giving just happens to coincide with Farm to Food Bank Month, a time when the California ag community can come together to help those less fortunate. And though we know California growers, packers and shippers give year round, this is the second year of the event hosted by the California Department of Agriculture and a wonderful opportunity to give more.
Nassif in D.C. for Meeting on Immigration Reform
2012 December 4.
Western Growers President and CEO Tom Nassif traveled to Washington, D.C. last week ensuring the specialty crop industry is at the table now that immigration reform has fast become an important topic for legislators and the White House. Following last month’s national elections and the further erosion of the Hispanic vote for Republicans, immigration reform and possible legislation is quickly moving toward serious consideration.
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