Tag Archive | business
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

June 25, 2025  

The True Value of Custom Business Insurance Policies

I was dropping off some clothes at my local dry cleaners a couple of days ago. In the retail center, I saw a barbershop advertising haircuts for $13. That’s it. That’s all the sign said. Not Tony’s Barbershop or anything like that.

Naturally, it caught my eye — because who doesn’t appreciate a good deal? Even more, it’s kind of nice to know up front how much a service is going to cost. No uncertainty, it’s just posted right there for everyone to see.

I’m not a fan of haggling. I’d prefer to buy a car with the price set. I don’t want to sit in a dealership and negotiate for four hours questioning myself, did I get ripped off? But at the same time, price isn’t everything. What’s the value?

This got me thinking. I am often asked by clients or potential clients, “How much will an XYZ policy cost?”

Since business insurance is not a commodity, there’s no up front answer unfortunately.

One-Size-Fits-All Doesn’t Work for Business Insurance

A $13 haircut works because the service is relatively simple, fast, and repeatable. One head of hair is pretty comparable to the next. I know that’s a generalization, but you get what I mean. No matter who walks in, they get the same base offering.

Business Insurance doesn’t work that way.

Let’s put this in the perspective of Professional Liability insurance (Errors & Omissions).

Your business has unique exposures. The way you interact with clients impacts your risk profile. How you structure your contracts is crucial. The way you manage your operations also plays a role. Additionally, how you handle mistakes or disputes affects your risk profile.

Before a policy can even be priced, an underwriter needs to understand:

  • What services your business provides
  • What your client engagements look like
  • Whether you use formal written contracts
  • How you handle complaints or errors
  • If you’ve had claims in the past

You don’t just pick a price off a menu. You submit an application, answer questions, and let the underwriter assess the actual risk.

“Just Give Me a Quick Quote” Doesn’t Cut It

It’s tempting to want a quick quote. Many websites offer instant insurance at seemingly bargain prices.

But when it comes to Professional Liability (E&O) insurance, you don’t want cookie-cutter coverage. You want a policy that actually responds to the types of claims your business face.

In my work with professional service firms — law practices, marketing agencies, consultants, managed service providers, etc. — I’ve seen too many “cheap” policies fail. They fail at the worst time. This happens because no one took the time to do it right.

The Bottom Line

For some things in life, it’s nice to know up front what something’s going to cost you. A car, a haircut, a 12-pack of beer….fine. But business insurance isn’t a commodity.

With business insurance, you’re not just buying a policy. You’re buying peace of mind that your business is protected when something goes wrong.

Ask questions. Work with someone who understands your industry. And don’t settle for a haircut when what you really need is a custom-fit suit.

Need help reviewing your liability insurance coverage?
Let’s have a real conversation about your business — not just your budget.

-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

June 3, 2024  

California Requires Workplace Violence Prevention Plans

Starting on July 1, 2024, employers of all sizes will be required to have a written workplace violence prevention plan, maintain a violent incident log, and provide workplace violence prevention training to employees. These requirements will apply to nearly all California employers and employees. Exceptions include healthcare employers covered by the state’s workplace violence prevention plan standard, remote employees working at a location not controlled by the employer, and worksites with fewer than 10 employees that are not open to the public.

Below are some highlights of the law. You can find more complete information on the requirements in our platform and on Cal/OSHA’s Workplace Violence Prevention Guidance and Resources page, which includes helpful FAQs and a Fact Sheet.

For questions and free technical assistance, employers should contact the Cal/OSHA Consultation Services Branch at (800) 963-9424 or by email at InfoCons@dir.ca.gov.

Workplace Violence Prevention Plan
Employers must develop and maintain a written workplace violence prevention plan that all employees can access and that is tailored to address the hazards and corrective measures in each work area and operation. The plan must include mechanisms for involving employees, including in the implementation of the plan, identification and correction of hazards, ongoing improvement of the plan, reporting of incidents, and the design of training.

The plan can either be incorporated into the employer’s existing written injury and illness prevention program (as a stand-alone section) or maintained as its own document. Employers are required to review the plan regularly and conduct periodic inspections to identify workplace violence hazards.

Cal/OSHA has created a model workplace violence prevention plan for employers to use.

Violent Incident Log
Employers must keep a violent incident log with specific information about each workplace violence incident. The information in the log must come from employees who experienced the incident, witness statements, and investigational findings. Personal identifying information (such as names and addresses) that would allow someone to identify those involved in the incident should be excluded from the log. The log must be reviewed annually, when a violent incident occurs, and when a deficiency arises.

Training
Employers are required to provide employees with training on the workplace violence plan when it’s first established and annually thereafter. Additional training has to be provided when a new workplace violence hazard is identified or when changes are made to the plan, but this training can be limited to covering those specific topics. Any training materials the employer uses must be appropriate for the employees’ language, literacy, and educational level.

Action Items
Create a written workplace violence prevention plan, make it available to all employees, and provide training on the plan.

As usual, if you’re feeling overwhelmed about this and other regulations, contact me if you can use a hand and I will facilitate my resources and relationships to help you out.

-JK