2026 Brings Another Increase in California Tree Care Work Comp Rates

Author, Rory Anderson, Partner, Account Executive, Rancho Mesa Insurance Services, Inc.

Pure premium rates are developed by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) and reflect the expected cost of workers’ compensation claims for a particular class of business. Each year, the WCIRB evaluates loss and payroll data reported by insurance carriers throughout California and develops advisory pure premium rates that serve as an important benchmark for workers’ compensation pricing.

Every workers’ compensation insurance carrier establishes its own base rate for the 0106 Tree Pruning class code. In developing that rate, carriers consider the WCIRB pure premium rate along with their own expenses, claims experience, underwriting results, taxes and fees, and profit requirements. As pure premium rates increase, there is generally upward pressure on the rates carriers charge tree care companies.

For 2026, the pure premium rate for class code 0106 Tree Pruning increased to $12.39 per $100 of payroll, up from $11.24 in 2025. That represents an increase of approximately 10.2% year over year.

For tree care companies, this is an important indicator of the continued cost of workers’ compensation losses within the industry. While an increase in the pure premium rate does not mean every company will see its workers’ compensation premium increase by the same percentage, it does create additional pricing pressure across the marketplace. A company’s actual rate will continue to depend on factors including its individual loss history, experience modification, payroll, safety practices, carrier relationship, and overall underwriting profile.

So, there are steps tree care companies can do to prepare and limit the impact of rising workers’ compensation costs:

• Reduce claim frequency and severity through a continuous and robust safety and training program that identifies and addresses the root causes of injuries. Rancho Mesa’s proprietary SafetyOne™ Platform offers tree care-specific toolbox talks and other tools designed to streamline effective safety programs.

• Control your experience modification rating through regular claim reviews, proactive claims management, and an aggressive return-to-work program.

• Maintain strong carrier partnerships and continuity. Long-term relationships with carriers that understand the tree care industry and provide strong in-house claims handling can become increasingly valuable in a challenging workers’ compensation environment.

The recent increase in the 0106 pure premium rate reinforces the importance of treating workers’ compensation as more than  just a transactional purchase. Tree care companies that actively manage safety, claims, return-to-work, and their overall risk profile will be better positioned to control costs and navigate an increasingly challenging insurance marketplace.

To learn how Rancho Mesa and our SafetyOne™ Platform can help your tree care company reduce risk and better manage workers' compensation costs, contact me at randerson@ranchomesa.com or (619) 486-6437.