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December 20, 2025  

California Workers’ Compensation Market Is Hardening

After nearly a decade of soft market conditions and falling premiums, California’s workers’ compensation landscape is experiencing a significant shift.

According to multiple industry sources, including the 2026 US Workers’ Compensation Market Outlook from Risk & Insurance, California’s combined loss ratio reached 127% in 2024. This is the highest level in more than two decades. That means carriers are projected to pay $1.27 in losses and expenses for every $1.00 in premium earned which is triggering a rate response and stricter underwriting practices.

Because California represents nearly 25% of the national workers’ compensation market, what happens here influences pricing, underwriting, and coverage trends nationwide.

Why California Costs Are Rising

Several key factors are currently reshaping the workers’ compensation landscape in California according to Risk & Insurance:

  • Medical and Legal Cost Inflation: Rising medical pricing, medical-legal billing charges, and indemnity costs are driving severity higher.
  • Cumulative Trauma Claims: CT claims now account for nearly 25% of California indemnity claims, far above national averages, increasing claim complexity and cost.
  • Remote Litigation (“Telelegal”): Virtual hearings have expanded litigation activity statewide, increasing defense costs and frequency.
  • Wage Inflation: When wages go up, workers’ comp benefits increase too, especially disability payments, and it’s even more noticeable with California’s minimum wage increases.

These combined influences have reversed the pattern of declining rates, resulting in increased premium expenses across the state.

How This Is Changing Underwriting

Carriers are tightening their approach and returning to more disciplined underwriting including:

  • Higher minimum premiums
  • Fewer discretionary credits
  • More frequent debits on experience mods
  • Net renewal increases of 20% or more, even on clean accounts

Here’s my advice for California employers and their 2026 workers’ comp renewals:

  • Start early: 90+ days before expiration
  • Review loss runs and reserves carefully: inconsistencies can be costly
  • Clearly describe your risk management strategies, focusing on your safety programs and return-to-work protocols for employees.
  • Check your payroll and class codes: small mistakes can lead to significant costs

As your broker, I am committed to a proactive, strategic approach to your workers’ comp renewals, going beyond reactive tactics. This allows us to address potential issues upfront, ensuring the best outcomes for your business.

By working together, we can create impactful risk narratives, making your work comp insurance more desirable for underwriters. We can also adopt a proactive strategy to uncover cost-effective solutions through audits and in-depth reviews of safety documentation, guaranteeing the most favorable pricing and coverage.

Workers’ comp in California is at a turning point and the employers who plan ahead will be the ones who control cost, maintain coverage, and avoid last-minute surprises in 2026.

October 16, 2025  

Understanding Workers’ Compensation for Employees Traveling Out of State

You might assume your workers’ compensation policy only applies within your home state. But what happens if an employee gets hurt on a quick business trip? For example, they are attending a conference in Arizona or visiting a client in Nevada.

The good news: in most cases, your policy has you covered.

The Rule of Thumb

If your employee’s employment is principally localized in your home state — meaning that’s where they normally work or report from — your workers’ compensation policy typically extends protection even when they’re temporarily working or traveling elsewhere.

So if a California-based employee slips and falls while on a short business trip in Texas, your California workers’ compensation insurance policy would usually respond.

How Your Policy Handles This

Workers’ compensation policies have a section called:
Item 3.A – Covered States
This lists the states where your policy automatically provides benefits.

Then there’s Item 3.C – Other States Insurance, which acts as a safety net. It covers short-term or incidental work in states not listed in 3.A.
If your policy includes language like “All states except monopolistic states,” that means your employees are protected when they travel for temporary business outside your primary state.

When to Add Another State

That “Other States” safety net only goes so far.
If your business expands into another state — hiring local employees or setting up a remote team — you’ll want to add that state under Item 3.A to make sure you comply with local laws and avoid coverage gaps.

Also note: four states (North Dakota, Ohio, Washington, and Wyoming) are monopolistic, meaning they require a separate, state-issued workers’ comp policy.

Why It Matters

Even a quick, two-day business trip can lead to a claim — and if your policy isn’t set up correctly, you could be exposed to penalties or denied benefits.

By keeping your “Other States” coverage up to date, you’re protecting both your employees and your business from unnecessary headaches if someone gets hurt while on the road.

Final Thought

Workers’ compensation isn’t just about compliance — it’s about taking care of your people, no matter where work takes them.

If your employees travel, work remotely, or occasionally cross state lines, it’s worth a quick review to make sure your policy is structured the right way.

I help clients review these details all the time to make sure they’re fully protected in all states where they operate — even temporarily.

If you’d like a review of your current setup, feel free to reach out.

-JK

August 21, 2025  

California Workers’ Compensation: First Rate Increase in a Decade

For the first time in 10 years, California’s workers’ compensation rates are increasing.

The state has approved an 8.7% rate increase, driven by sharply rising claim costs and industry-wide financial strain.

The Workers’ Compensation Insurance Rating Bureau (WCIRB) projects the 2024 Accident Year Combined Ratio at 127%. This is the highest ratio since 2001.

Put simply, carriers are paying out $1.27 for every $1.00 of premium collected, which is unsustainable without pricing adjustments.

Why Are Costs Rising?

There are three major culprits behind the jump in workers’ compensation costs:

  1. Cumulative Trauma (CT) Claims
    CT claims are injuries that occur over time rather than from a single incident. They are rising rapidly. These claims are more complex, harder to close, and often stay open for years, adding significant cost to the system.
  2. Rising Medical Costs
    After years of stability, medical costs turned sharply upward in the past year. Factors include higher provider charges, more advanced (and expensive) treatments, and longer recovery times.
  3. Increased Litigation
    Loss adjustment expenses are climbing as litigation becomes more common. Disputes over claims often extend case duration’s and increase settlement values.

Together, these trends are straining the workers’ comp system. Unfortunately, employers will start to feel the impact as a result. It shows in the form of higher premiums.

What This Means for Employers

If you’re a California employer, expect workers’ comp pricing to firm in the coming policy renewal cycles. While legislation may eventually need to address systemic cost drivers, the immediate impact is higher insurance costs.

Now [and always] is the time to:

  • Focus on claims prevention: Invest in workplace safety programs and early intervention for injuries.
  • Review your claims history: Cumulative trauma claims often arise when small issues aren’t addressed quickly.
  • Work with an experienced broker: Having the right advocate can help you navigate pricing changes. They can also help you in exploring coverage options. Additionally, they implement risk management strategies to control costs.

My Take

While rate increases are never welcome news, disciplined carriers and proactive employers can still manage costs effectively. As your broker, our role is to help you stay ahead of these changes. We control risks and make sure you’re partnered with carriers who remain stable, consistent, and service-oriented. This is crucial in a hardening market.

-JK

January 23, 2025  

OSHA Form 300A Posting Begins February 1

Employers that had 11 or more employees in the company at any point in 2024 must post the Occupational Safety and Health Administration (OSHA) Form 300A.

This form is a Summary of Work-Related Injury and Illnesses. The posting period is from February 1 through April 30.

This requirement applies even if the company didn’t have any recordable incidents in 2024. A company executive must certify OSHA Form 300A. The form should be posted in each establishment. It must be in a conspicuous location where notices to employees are customarily posted.

Certain establishments are partially exempt from OSHA’s routine recordkeeping requirements. This includes establishments with 10 or fewer employees. It also includes those whose primary business activity is classified as low hazard according to OSHA’s guidelines.

A full list of exempt low-hazard industries, ordered by North American Industry Classification System (NAICS) codes, can be found here.

The exemption is “partial” because all employers must notify OSHA when an employee is killed on the job or suffers a work-related hospitalization, amputation, or loss of an eye.

Need help with this stuff? Give me a call or shoot me a message and we can talk.

-JK

November 18, 2024  

Important Changes to Workers’ Compensation Posting Notice in California

On July 15, California State Governor Newsom signed AB1870. This bill amends Labor Code 3550. It adds language to the workers’ compensation posting notice, DWC-7, that informs employees of their right to consult an attorney. This update takes effect 1/1/2025 and applies to any workers’ compensation policy, regardless of renewal term.

California has published the revised DWC7 which can be found HERE.

If you are are a California Workers Compensation insurance policyholder, I recommend that you:

  • Continue to report injury claims promptly
  • Educate managers, supervisors, and employees about their rights and the proper steps to take if an injury occurs
  • Supply the latest version of the DWC7 posting notice
  • Post the updated notice in a conspicuous place, where all employees have access to it (failing to post is considered a misdemeanor and can result in fines)
  • Talk with your Workers Compensation insurance provider about Back to Work options at your business

If you have questions, contact me.

-JK

October 3, 2024  

How to Prepare for Your Workers Compensation Audit

Your Workers Compensation insurance policy premium is rated based on annual payroll. When your policy is first issued, an estimated annual payroll is used looking ahead at the next 12 months.

In most cases, it’s almost impossible to forecast what your exact payroll will be for the next twelve months. Especially with hourly employees where schedules constantly fluctuate and you have peak seasons and slow periods.

So, when you buy a workers compensation insurance policy for the first time, or are renewing for a new policy term, annual payroll estimates are used to calculate the policy premium. and at the end of the annual policy term, the insurance carrier must do a premium audit to find out what the official payroll amounts are for the prior 12 months.

Let’s face it, audits suck. It doesn’t matter what kind of audit….insurance, taxes, you name it. Can you think of any audit that doesn’t suck? Unfortunately, workers compensation policy audits are not optional, they’re required by any and all carriers.

So, how should you prepare for your Workers Compensation policy audit?

The best way to prepare is by keeping proper records and documentation throughout the policy period. An audit is conducted based on the review of correct, organized records.

Since your workers’ compensation policy is payroll based, the following documents are typically needed by the auditor:

  • Quarterly 941 tax documents/payroll registers
  • Employee information, including:
    -Names
    -States
    -Description of duties
    -Gross wages
  • Furloughed wages
  • Contracted labor
    -Certificates of insurance for subcontractors, if applicable
    -Description, location and dates of work performed
    -Amount paid for contracted labor

What can I expect?

Your audit will be conducted in one of the four methods:

  1. On-site physical
  2. Electronic/virtual physical (counts as physical by all state bureaus)
  3. Phone
  4. Mail

The method is determined based upon multiple factors, including premium, complexity and state regulations. An auditor will reach out to you after your policy expiration via phone, email or letter to give you more information.

Yes, audits suck, but unfortunately there’s no way around it. As long as you’re organized and prepared with this information, hopefully your next audit will be smooth and painless and you can put it behind until next year where you have the joy of doing it all over again.

Enjoy!

-JK

September 19, 2024  

Build Your Injury and Illness Prevention Program: Easy Tool for California Employers

All California employers are required to create an Injury and Illness Prevention Program (IIPP) that’s tailored to their business and accessible to all employees.

The State Compensation Insurance Fund offers a no-cost, easy-to-use Injury and Illness Prevention Program IIPP Builder℠. Also, to make it easier for companies with Spanish-speaking employees, this is now available in Spanish too.

The tool is available to all California businesses, regardless of whether they are a State Fund policyholder. It’s easy to switch between English and Spanish, and offering a program in the preferred language of Spanish-speaking employees can help business owners create a culture of safety in their workplace, reduce the risk of injuries, and promote healthy practices.

I provided the links above, but to create an IIPP in English or Spanish, visit www.SafeAtWorkCA.com, then simply create an account and follow the prompts to build and save a customized program.

State Compensation Insurance Fund policyholders can log in to create and save their Injury and Illness Prevention Program then return to revise, update, or translate it whenever they need to.

Of course, building your own IIPP isn’t ideal for all businesses. Some are more complex and need the help of a dedicated safety consultant.

If your business needs help building a tailored Injury and Illness Prevention Program, contact me for resources and referrals to help with this. I have many.

-JK

August 28, 2024  

First Year Workers Account for 40% of Workers Compensation Claims

Workers who have been employed for less than a year are responsible for almost 40 percent of all workers’ compensation claims – according to the Workers’ Compensation Insurance Rating Bureau of California (WCIRB). This is staggering if you ask me. 40%?!!

There are many reasons that can lead to this statistic. Employee inexperience, unfamiliarity with workplace hazards and insufficient training to name a few.

The good news is, there was ways to help you ensure the safety of your new employees, preparing them properly for the workplace, preventing incidents and lowering claims.

Here are 7 proactive steps you can take to ensure the safety of your new employees. Actually, for ALL employees, but the emphasis here is the new employees who statistically show to be at higher risk:

1 – Comprehensive Onboarding and Training

Implement thorough onboarding programs that include detailed safety training. Make sure new employees are well-versed in workplace hazards, proper equipment use, and emergency procedures.

2 – Mentorship Programs

Create a supportive environment by pairing new employees with experienced mentors. These mentors can guide them through the job’s safety aspects and offer ongoing support, making them feel less isolated and more confident in their roles.

3 – Safety Culture Promotion

Foster a strong safety culture where employees feel comfortable reporting hazards and unsafe conditions without fear of retaliation

4 – Regular Safety Audits

Conduct regular safety audits and risk assessments to find and address potential hazards that affect new workers.

5 – Ergonomic Assessments

Make sure workstations and tasks are ergonomically designed to reduce strain and prevent injuries, particularly in industries like construction and restaurants where physical strain is common.

6 – Clear Communication

Keep open lines of communication about safety expectations and procedures. Encourage employees to ask questions and seek clarification on safety matters.

7- Adjust Workloads

Gradually increase the complexity and intensity of tasks assigned to new employees to allow them to build experience and confidence without overwhelming them

Proactively implementing these strategies significantly contributes to a safer work environment, reducing injuries among first-year employees and showing your commitment to their well-being.

But I want to emphasize, make sure you’re focusing on the safety and wellbeing of ALL employees. This creates a safe, positive work environment that can save a ton on operational costs by keeping your Experience Modification Rating DOWN.

I’m here to help!
if you have any questions or concerns, please contact me at jkinmartin@olsonduncan.com

Thanks for reading

-JK

November 30, 2022  

It Takes Twice as Long to Close California Workers’ Comp Claims Compared to Other States

File this under the “I’m not surprised” file, it takes seven years to close most workers’ compensation claims in California, more than double the time in the median state.

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) released a report detailing duration drivers for California workers’ compensation claims.

The report, Drivers of California Claim Duration, describes duration drivers for California workers’ comp claims, including how claim duration differs regionally across the state.

Here’s the report:

wcirb-claimdurationstudy-2022-1Download

Highlights of the report include:

  • It takes seven years to close 90% of claims in California compared to three years for the median state.
  • Longer California claim duration is driven by four “duration drivers,” including a higher share of permanent partial disability and cumulative trauma claims in California, greater utilization of medical-legal services in California and regional differences within the state.
  • Claim closing rates rose steadily following the reforms of Senate Bill 863, particularly for PPD claims of lower-wage workers.
  • Claim closing rates declined during the pandemic in 2020 and were relatively flat in 2021.

California, why do you have to make everything so complicated? [banging head on desk]

Source: Insurance Journal

-JK

July 28, 2022  

Heightened Action in Cal/OSHA’s Task Force Enforcement

Southern California businesses have recently experienced a noticeable escalation of inspections and enforcement by Cal/OSHA’s Labor Enforcement Task Force Unit based in Santa Ana.

Unprecedented Hotel and Motel Labor Enforcement Task Force inspections are diligently being processed to verify whether these companies have a current:

  • Housekeeper Ergonomic Written Plan (MIPP)
  • Illness & Injury Prevention Plan (IIPP)
  • Hazard Communication Plan/Checkup (Dealing with Chemicals & Toxic Materials)

Many small and mid-sized Southern California employers have overlooked these compliance requirements during the past several years but now must consider the strong possibility that their company will be visited soon.

So, Here’s The Big Question: ARE YOU READY?

A safety review and compliance check can save thousands of dollars in fines and citations.

If you would like help with this, contact me. I have trusted partners that provide large or small companies with comprehensive inspections – efficiently, quickly, and with total expertise. They can assist you in reviewing existing practices and then help you design policies and training that are compliant with 2022 new and evolving laws.

-JK

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