Industry News
Six Ways Contractors Can Prepare for Higher Workers’ Compensation Rates
Authors, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
Over the last couple of months, we have published multiple articles and podcasts on the Workers’ Compensation Insurance Rating Bureau’s proposed rate increase and now the approved 8.7% increase to the pure premium rates effective 9/1/25. But, what we have not touched on are the specific steps our best-in-class contractors are doing to position their companies to offset these increases.
How Changes to the Expected Loss Rates Will Impact Concrete Companies
Authors, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
In addition to the Workers’ Compensation Insurance Rating Bureau’s (WCIRB) proposed 11.2% workers’ compensation pure premium rate increase, the WCIRB will also be updating the 2025 Expected Loss Rate (ELR) effective 9/1/25.
WCIRB Proposes Expected Loss Rate Decrease for Landscape Industry
Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
The Workers’ Compensation Insurance Rating Bureau (WCIRB) has proposed a 2% decrease (from $2.42 to $2.37) in the expected loss rate for the landscape class code 0042.
Changes on Horizon Likely to Affect Workers’ Compensation
Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.
Changes by the WICRB typically take place at the first of every year and can impact workers’ compensation Pure Premium Rates, Expected Loss Rates (ELR) and Wage Thresholds. However, the WCIRB has amended its filing schedule in 2021 to take effect September 1st.
California’s Landscape Industry Prepares for Ex-Mod Changes
Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
For the first time in several years the Expected Loss Rate for class code 0042 has increased from $2.38 to $2.42, a 2% increase.
Bottom line, although very minimal, this should help bring the experience mod down.
Profitable Bids Should Include Often Overlooked Insurance Costs
Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.
We will take a look at factors that go into your bid and ways to ensure you are hitting your target profit margin. There are many factors that go into creating a profitable bid on a construction project. They include…
California’s Workers’ Compensation Landscape May Reach a Valley in Coming Year
Author, Drew Garcia, Vice President of the Landscape Group, Rancho Mesa Insurance Services, Inc.
The workers’ compensation market for landscape companies in California has remained in a downward trend since 2015. As a result, landscape business owners have realized lower rates and subsequently aggressive premiums. The following are some key insights to help landscape businesses prepare for their 2021 workers’ compensation insurance renewal.
Post COVID-19 XMODs Threaten a Double Whammy
Author, Kevin Howard, C.R.I.S., Account Executive, Rancho Mesa Insurance Services, Inc.
COVID-19 has created a multitude of challenges for California business owners in the first half of 2020. A concerning trend is the potential combination of lower payrolls and the California Workers’ Compensation Insurance Rating Bureau’s (WCIRB) recommendation to lower expected loss rates, creating what very likely could be significant Experience Modification Rate (XMOD) increases for numerous California businesses.
Contractors Brace for Impact of 2020 Expected Loss Rates
Author, Kevin Howard, CRIS, Account Executive, Rancho Mesa Insurance Services, Inc.
California contractors focused on their experience modification are paying close attention to the soon to be published 2020 Expected Loss Rates (ELRs).
The Ticking Time Bomb for Plumbing and Mechanical Contractors: Lower Expected Loss Rates Can Mean Higher Experience Modifications
Author, Kevin Howard, CRIS, Account Executive, Rancho Mesa Insurance Services, Inc.
The Workers Compensation Insurance Rating Bureau (WCIRB) released the 2019 Expected Loss Rates (ELR’s) in the 4th quarter of 2018. The ELR’s in the plumbing class code 5187 dropped 17% on January 1st 2019. This decrease is not getting significant attention, but could potentially create negative implications for California plumbing contractors and their respective experience modifications in 2019, 2020 and beyond.
2019 Expected Loss Rates Published in California’s Updated Regulatory Filing – X-MOD Impact Inevitable for 0042 Class Code
Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
The 2019 Expected Loss Rate (ELR) for Landscaping class code 0042 was recently published at a 15% decrease or $2.97.
The ELR is the factor used to anticipate a class code’s claim cost per $100 for the experience rating period. It is not to be confused with the Pure Premium Rate (PPR). The ELR differs from the PPR in that the ELR simply measures the basic claim cost for a class code without including loss adjustment expense, excess loss load (capped at $175,000 for X-MOD purposes), and loss development.
Changes in the 2019 Experience Modification Formula – Are You Ready? (Part 2)
Author, David J. Garcia, A.A.I, CRIS, President, Rancho Mesa Insurance Services, Inc.
As we approach 2019, there will be several changes in the experience modification formula that directly affects the calculation of an employer's 2019 Experience Modification Rate (EMR).
Part 1 of this article describes the Primary Threshold and Expected Loss Rate. Read Part 1 of this article. Part 2 provides an overview of the changes to the EMR calculation.
Changes in the 2019 Experience Modification Formula – Are You Ready? (Part 1)
Author, David J. Garcia, A.A.I, CRIS, President, Rancho Mesa Insurance Services, Inc.
As we approach 2019, there will be several changes in the experience modification formula that directly affects the calculation of an employer's 2019 Experience Modification Rate (EMR). Sadly, most businesses are both unaware and unprepared.