Attention business owners! The Worker’s Compensation Rating Bureau authorized the submission of an Advisory Pure Premium Rate Filing to the California Insurance Commissioner. What the WCIRB is attempting to do is raise the workers comp pure premium in California. Though it’s a slight increase, it is presumably the start of more increases which make it ever harder to run a profitable business in this state.
Beyond the aforementioned, increased Worker Comp Pure Premiums hit a business owner pockets in more than one way. Firstly premiums increase for workers comp insurance, that’s what is obvious. But secondly, this increase is correlated with a trend in an increase wages as a result. The correlation is workplace economics; an increase in overhead can eat away at the wages an employee makes, by decreasing the amount a small business is willing to pay. These lower wages can cause a higher employee turnaround, as well as retention issues just to name a couple. It’s basically an increase that is going to have to be made up somewhere else, and unfortunately probably at a business owners expense.