Insurance companies and policyholders agree to a number of terms in an insurance contract. For example, a company might agree to insure a business’s manufacturing plant in the event of a disaster such as a flood, in exchange for the corporation paying monthly premiums to the insurance company. What’s more, every insurance policy in California…
Insurance companies adjust workers’ compensation premiums based on a company’s actual losses compared with the “expected” losses of all other similarly sized companies in the same industry. This adjustment, or experience modification, is expressed as a percentage. A company with an experience modification of more than 100% has had a greater-than-expected number of claims (a…
Insurance companies typically calculate workers’ compensation premiums based on the size of a company’s payroll and the type of work the company performs. Most companies’ premiums are also adjusted by applying an experience modification, which is expressed as a percentage. This modification adjusts the premium up or down depending on the company’s workers’ compensation claims…
Workers’ compensation insurance is required of all California employers—even those who only employ one person, part-time. The policy serves as a social safety net to provide compensation for employees who become injured on the job and also limits the liability of employers if an employee sues over workplace-related injuries. Workers’ compensation insurance premiums are collected…
All businesses in California must carry workers’ compensation insurance in the event anyone who performs work for a company is injured while working. Unlike other types of insurance, workers’ compensation policy premiums are collected as an estimate during the policy term. Once the policy term ends, an auditor checks the premium amounts by conducting an…
Workers’ compensation premiums, or the amount the employer pays to insurance companies to protect the employer as well as the employee in the event of a workplace accident, can be challenging to calculate. A premium is based in part on the dollars in payroll the company pays as well as the employer’s industry. Underreporting of…
Workers’ compensation premiums, or the amount an employer pays to an insurance company in exchange for the carrier providing medical treatment and compensation to employees in the event of workplace accidents, are audited at the end of the policy term. Before the policy becomes effective, workers’ comp insurance companies prepare an initial estimate of premiums,…
Workers’ compensation insurance, the nation’s oldest social insurance, protects employees and employers if an employee is injured while on the job. If employees get hurt or are sick because of work, an employer must pay workers’ compensation benefits, and those benefits are typically paid through insurance. Because this insurance affects nearly all California employers and…
While a predetermined formula sets workers’ compensation insurance premiums, employers often dispute the amounts of the premiums they are asked to pay and it’s no surprise as to why: Insurance premiums are one of the many challenging costs for California employers. In fact, according to a 2014 report, California is the most expensive state for…
The California legislature was certainly busy last year, resulting in a number of new and significant employment laws effective January 1, 2018. Employers should take note of the following key developments and review their policies and practices—preferably with counsel—to ensure they are in compliance and limit their potential exposure.