SANTA ANA, Calif., Nov. 15, 2014—ContractorHelpers.com reports that California Insurance Commissioner Dave Jones has recommended an average pure premium rate for the California workers’ compensation program that is lower than the state Workers’ Compensation Insurance Rating Bureau’s proposal. 
California Contractors Workers Compensation Insurance Pure Premium
“The WCIRB recommended a pure premium rate of $2.77 per $100 of employer payroll. The Public Members’ actuary recommended a rate of $2.69 per $100 of payroll,” wrote Jones. “The Department of Insurance… recommends adoption of a pure premium rate of $2.74 per $100 of employer payroll,” a recommendation with which Jones agrees. That is nearly a 1.5 percent increase over the 2014 pure premium rate of $2.70.
ContractorHelpers.com recently reported that California has the highest workers’ compensation insurance premium rate in the nation. That includes, of course, California contractors workers compensation insurance premiums.
Gap in Recommendations
The gap between the various recommendations, Jones goes on to explain, is “due to differences in actuarial projections regarding Senate Bill 863.”The Department of Insurance recommends a reduction in medical losses due to anticipated savings in SB 863, while the WCIRB did not include that anticipated savings in its calculations.Jones also noted that the WCIRB’s filing “demonstrates that insurers continue to charge premiums that are very close to the estimated cost of providing benefits and adjusting expenses.”The advisory average pure premium rate of $2.74 per $100 of employer payroll is effective Jan. 1, 2015.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 contractors workers compensation insurance to contractor bonds and a “pay as you sell” liability insurance program designed especially for homebuilders. To learn more about California contactors workers compensation click here. If you have questions about your contractor insurance coverage, contact us.
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