The Hidden Shift in Workers’ Compensation Pricing

NewsWorkers' CompensationHuman Services
Written By Guest User

Author, Raysan Benito, Account Executive, Rancho Mesa Insurance Services, Inc.

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) recently proposed a pure premium rate increase of about 17% for non-profit and human services organizations, which is higher than the overall state-wide average of 10.4%.

If approved by California Insurance Commissioner Richardo Lara, these changes will go to take effect starting September 1, 2026.

Rising claim severity, wage inflation, and higher medical costs are causing carriers to adjust pricing and eligibility requirements.

Affects to Your Organization

While some class codes will see increases of only 1%, others could feel a 28% jump in the premium base rate. With the expected higher base rates, renewal pricing will likely increase with little advanced notice if you are not working with an advisor who specializes in your industry.

With the increase in pricing, credits, dividends, or discounts may be reduced or eliminated completely. And, coverage terms may become more restrictive.

The chart below outlines the increases for each classification code.

 
Class Code Industry Pure Premium Rate Increase
9085 Residential Care for Developmentally Delayed 28%
8868 Day Services for Developmentally Delayed 27%
8868 Private Schools 27%
8875 Charter Schools 27%
9015 Building Operations Including Janitorial 25%
9011 Apart/Condo Complex Operations 16%
8804 Shelters/Recovery 13%
9059 Child Care 13%
8823 Residential Care for Children (Group Homes) 11%
9070 Residential Care for Adults 8%
8834 Rhysicians & Clinic 6%
8839 Dentistry 5%
8827 Hospice & Home Care 1%
 

Act Now

Many organizations will not know about the change in pure premium until it is too late to prepare. Early action gives you more options, more control, and better outcomes. Waiting could mean higher premiums and fewer choices.

Schedule a quick 15-minute workers’ compensation checkup with me at (619) 798-2823 or rbenito@ranchomesa.com.

About the Author

About the Author

Raysan Benito is a Commercial Insurance Broker with Rancho Mesa Insurance Services, Inc., specializing in providing tailored insurance solutions for non-profit organizations, private and charter schools, and home health care agencies throughout San Diego and Southern California. Raysan helps human services organizations protect there mission with customized coverage and access to risk management resources tools like the SafetyOne™ Platform, RM365 HRAdvantage™ Portal, and workers’ compensation claims advocacy services.

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