Industry News
Top 5 Risk Exposures for Janitorial Service Providers
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Running a successful janitorial company means more than delivering spotless facilities. Every day, your employees work around customers, expensive property, cleaning chemicals, and equipment creating exposures that can lead to costly liability claims.
CA Workers’ Compensation Market Faces Increased Pressure Beneath Stable Surface
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Recently, the Workers’ Compensation Insurance Rating Bureau (WCIRB) of California released its Quarterly Experience Report that offers insight into the state of the California workers’ compensation market. While at a glance, the market may seem stable; however, there are evolving claim patterns that are creating challenges for insurers and employers alike.
Representing Independent Agents in Washington: Key Legislative Takeaways from the Big “I” Conference
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
On April 22-24, I had the opportunity to attend the Big “I” Legislative Conference in Washington, D.C. The Big “I” is the national organization affiliated with IIABCal and IIAB San Diego. It represents and supports independent insurance agencies at the federal level and maintains a strong presence in Washington, advocating tirelessly on behalf of independent agents and our carrier partners.
Protecting Your Bottom Line: The Critical Role of Excess/Umbrella Liability Coverage for Contractors
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
The construction industry operates in one of the highest‑risk environments. Contractors work with heavy machinery, multiple layers of subcontractors, hazardous jobsites, strict contractual obligations, and constant exposure to the public. These conditions create significant exposure to large liability claims. And, although general liability, auto liability, and employers’ liability insurance make up the foundation of a contractor’s risk management program, these primary policies often do not provide enough protection when a major incident occurs.
WCIRB Approves Dual Wage Threshold Increases for 2026: What California Contractors Need to Know
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
The Workers’ Compensation Insurance Rating Bureau (WCIRB) has reviewed and approved a proposal to increase the hourly wage threshold for 13 out of the 16 dual wage classifications by $2 to $5 per hour that would go into effective September 1, 2026, once Insurance Commissioner Ricardo Lara agrees.
Doubling Down on Safety in California’s Janitorial Industry
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
For those that run janitorial businesses in California, you have probably heard the news that workers’ compensation rates are on the rise. Insurance Commissioner Lara recently approved a recommended rate increase of 8.7% on average across all classification codes effective September 1st 2025. For the janitorial industry specifically, the pure premium increase was 11%. These increases will result in higher costs for employers across the board.
A Proactive Approach to Insuring Your Commercial Property
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Wildfires in California over the last several years have had a dramatic effect on the insurance marketplace. With expected losses of the recent Los Angeles fires alone to exceed $30 Billion, insurance companies have been taking action to stop the bleeding. These actions include non-renewing policy holders in high hazard zones as well as pulling out of California all together.
Non-Owned Auto Can Be A Janitorial Company’s Hidden Nightmare
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
It is common for employees of janitorial companies to drive their own vehicles, whether that is driving to various jobsites, transporting cleaning supplies, or simply running errands. For the janitorial company, this creates what is referred to as a non-owned auto exposure.
Best Practices Approach to Insuring Janitorial Companies
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Running a successful janitorial company in California can often be cut throat. With low profit margins, janitorial companies continue to face daily challenges like increased wages and material costs, as well as aggressive competition that continues to under bid contracts. It is natural for business owners to explore ways of cutting costs to help their bottom line, but insurance should not be one of them. In fact, they should be looking to add coverages that are unique to janitorial operations and protect the long term health and viability of the company.
Governor Signs PAGA Reform
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
On July 1st, California Governor Gavin Newsom signed legislation to reform the Private Attorney’s General Act (PAGA). The legislation was enacted to help ensure workers retain a strong tool to resolve labor claims and receive fair compensation, while reducing shakedown lawsuits that hurt employers and employees.
Property Insurance in California Continues to be a Ticking Time Bomb
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
Insurance industry experts and legislators continue to work with Insurance Commissioner Ricardo Lara and the California Department of Insurance (CDI) to address the overwhelming crisis in the insurance property market. On March 26th, 2024, there was a public hearing to address the crisis.
Best Practice Tips for Lowering Your Commercial Auto Rates
Author, Jeremy Hoolihan, Partner, Rancho Mesa Insurance Services, Inc.
For the last several years, the insurance industry has seen a significant increase in auto rates. In 2023, the top ten auto carriers in the US all saw double digit rate increases. This, in addition to the rate increases we’ve seen since 2018, equates to rates anywhere from 20-50% higher than we had just a few years ago. According to US auto insurers, these rate increases are still not keeping up with the skyrocketing claim frequency and severity. Therefore, we are likely to continue to see auto rates increase before things level off.
The Road to Recovery: Commissioner Lara's Plan to Rescue Property Insurance in California
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
California Governor Gavin Newsom recently declared property insurance a State of Emergency in CA based on a mass exodus of property insurance companies. This has allowed CA Insurance Commissioner Ricardo Lara to strike a deal with insurance companies to encourage new coverage in the State. The changes are slated to go into effect by the end of 2024. However, the hope is that insurers will begin to write homeowner’s policies sooner.
SafetyOne™ Mobile App Streamlines Safety Within the Janitorial Industry
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
Earlier this year, Rancho Mesa launched its proprietary SafetyOne™ mobile app. Feedback so far has been extremely positive, with many clients taking full advantage of the extensive resources the app provides.
Signs of a Continued Hard Property Market in 2023
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
The property insurance marketplace continues to be a challenging segment in 2023. With catastrophic events that have occurred over the last several years such as hurricanes, floods, wild fires, and major storms, the property marketplace has taken a huge hit that will take many years to recover. As a result, we expect property pricing to continue increasing for the foreseeable future. There are several real-world examples of the property market hardening.
The Importance of a Job Hazard Analysis in the Janitorial Industry
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
The janitorial industry faces job hazards on a daily basis. The key to running a successful and safe business is identifying hazards within the workplace well before injuries or liabilities can occur. One way to keep track and address hazards in the workplace is by creating a Job Hazard Analysis (JHA). A JHA can be used to identify individual exposures to each specific jobsite and create a plan or solution to minimize these risks.
Auto Insurance Carriers Struggle With Effects of Inflation
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
Inflation continues to plague our nation with no end in sight. With a consumer price index (CPI) reaching as high as 9.1% in July of 2022, the trickledown effect is far reaching. In the second quarter of 2022, the auto insurance marketplace saw a loss ratio of 78.4%. This is quite a spike compared to the average loss ratio of 65% between the years of 2016-2020. Inflation is not the only contributing factor to the challenges within the auto insurance marketplace; we’ll discuss medical inflation, supply chain shortages, and labor shortages.
California Insurance Commissioner Leaves Workers’ Comp Rates Flat
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
California Insurance Commissioner Ricardo Lara released a statement that he is rejecting the Workers’ Compensation Insurance Rating Bureau’s (WCIRB) recommended 7.6% increase in the workers’ compensation pure premium rates as well as the add-on to cover COVID-19 claim costs. The Commissioner also rejected a more modest 2.8% increase recommended by the Department of Insurance’s actuaries and the 1.4% decrease recommended by an independent actuary for the public members of the Bureau’s governing committee.
Is Your Business Safe From a Business Email Compromise Claim?
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
Cybercrimes are at an all-time high. News sources report cybercrimes almost on a daily basis with most of the press relating to company breaches and cyber extortion. However, one of the biggest cyber threats that is often overlooked is Business Email Compromise (BEC).
Your Commercial Vehicle May Require a Motor Carrier Permit
Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.
When a company has vehicles on the road, it’s important to understand all the commercial vehicle requirements in order to stay in compliance.