California contractors won’t be surprised by the results of the 2014 Oregon Workers’ Compensation Premium Rate Ranking Summary, which lists the average work comp premiums paid by employers–including California contractors workers compensation premiums.

The California Contractors Workers Compensation Rate

Though the 2014 national median value of workers’ comp premiums paid was $1.85 per $100 of payroll–a 2 percent decrease from the $1.88 national median in the 2012 study—the California workers comp premium rate actually went up, from $2.92 in 2012 (the last year the study was released) to $3.48. That means, of course, that the California contractors workers compensation premium went up.

California’s is, by far, the highest workers’ comp premium rate in the nation.

Number 2—Connecticut–lagged behind California at $2.87. The Golden State’s rate is about 47 percent higher than the national median value of $1.85 per $100 of payroll, and is nearly 400 times as high as lowest-ranking North Dakota, which came in at just 88 cents per $100 of payroll.

The Most Expensive in the Nation

For more than a decade, California has consistently been ranked as one of the most expensive work comp states. Ten years ago, it was also at number one, then dropped to number two in 2006. In 2008 it dropped to number nine, but since then has hovered in the top five.

Oregon began tracking work comp premium ratings in the 1980s to demonstrate the need for reform. On the first report, Oregon was the sixth most expensive state for work comp premiums; in the 2014 report, it reached its best ranking yet: number 43.

Perhaps California will follow its northerly neighbor’s example and view this dismal ranking as inspiration for truly effective work comp reform.

ContractorHelpers.com is a service of Insurance Partners, Inc., which has been providing quality protection for contractors for more than 35 years. California contractors insurance specialists work with companies on everything from California general liability and California workers compensation insurance to contractor bonds and a “pay as you sell” liability insurance program designed especially for homebuilders. If you have questions about your contractor insurance coverage, contact us.