Exit Strategies for Construction Companies

Author, Anne Wright, Surety Relationship Executive, Rancho Mesa Insurance Services, Inc.

For years, I’ve heard various clients explain their plans to ensure both retirement and business continuity as their key people plan to exit the workforce. Depending on the company, some plans have gone well, and others not quite as well. And, some plans are ever evolving. Typically, this process will take a lot of time and thought, and rethinking in order to make sure it is done right.

If are planning your exit strategy and your company works with a surety, please do not wait to bring this to the attention of your agent. Both your agent and surety might be able to provide some valuable insight based on what they have experienced or other resources. Certainly, it is important to bring the surety into the conversation early. Surprises, as we often experience and talk about, are typically not the best way to manage communication.

So, let us visit some thoughts on various options and strategies.

I continue to be very fortunate, in my long career in this industry, to be connected with some really bright people in so many areas that can assist my contractor clients with planning of various types. The thing with continuity planning, though, is that a lot of people do not seem to want to either think about it or take the time to plan for it. It will go so much more smoothly, if they do. With the right plan and the right consultant, a lot of peace of mind can follow.

Often times, for small to medium companies, we have seen plans to hand the company off to the next generation. But how do you do that without a good plan for the transition, considering management, mentoring and, importantly, tax strategies?

We have, of course, seen large companies be purchased by even larger companies. Mergers and acquisitions have been happening for years. Private equity acquisitions continue to be popular. And, ESOPs (employee stock ownership plans) continue to be in the mix.

For some, a visit with their CPA and an attorney might be all they need to lay out a plan, but this should be done well in advance of a formal transition date.

For others, where does one find a good resource to lay out the various options to put the best strategy and plan in place? I am happy to connect you with John Ovrom with Exit Consulting Group and his team to start a conversation and planning process. Or, another option is perhaps you have peers as members of your trade associations who can share their story and experience.

As you consider a retirement or transition strategy, the first thing you will want to have in order is your financial information. Any planning is going to be based on the equity/value of the company, and, strategies for how to buy out an owner over a specific period of time, and who will be taking charge, of what and when, will determine the timeline.  

Before you begin the process, pull together a few items:

• Updated accurate financials

• Valuation of the company by an outside source, such as your CPA

• Organizational charts for management and key positions

• Projections for the financial impacts of working capital and equity of the company

And, decide on the following:

• What compensation do you want to get out of the company and what are your terms?

• Key team for ownership and management

• Timeline to put a plan in place

All of these items will be important tools for your surety when you start these important discussions.

A company is only as good as its management and people, as we all know. Oftentimes, a business owner thinks the day to day business operations would continue in the event of their absence. That said, regardless of whether the plan is to retire and sell the company or something tragic happens, all businesses should know what might happen when the inevitable comes.

I have heard of some companies testing the waters with a mock death, of sorts, where   employees are aware it is only a drill. But the idea is to see how smoothly operations would really run if an unplanned exit should occur. It helps to answer questions like who handles the relationships with key business partners, inside and outside staff, etc.?  Having that peace of mind matters to everyone involved. So, this tool could be used by any business owner, whether that succession/transition is on the horizon today or not.  This may sound a little extreme, but for some, it could prove to be enlightening and assist with any weak links in what a transition plan/exit strategy might involve.

If you have any questions on any of this, feel free to reach out to me at awright@ranchomesa.com, (619) 937-0164, or John Ovrom at jovrom@exitconsultinggroup.com, (619) 202-6888.

Staying Up-to-Date with OSHA 300 Logs

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Employers who maintain accurate OSHA logs not only avoid costly fines but also gain valuable insights into workplace safety trends by identifying hazards early and in real-time, thus strengthening the effectiveness of their safety programs.

Under OSHA’s recordkeeping regulations, employers with more than 10 employees in designated industries are required to keep detailed records of injuries and illnesses that occurred on the job. Often referred to as OSHA logs, these records include OSHA Forms 300, 300A Summary and 301.

OSHA Logs

OSHA Form 300

The OSHA Form 300 is a list of each occupational injury or illness and basic details including the employee’s name, job title, date of injury or illness, location and a brief description. The 300 log shall also include the seriousness of the injury or illness, the number of days the employee was away from work or was transferred as a result of the injury or illness, and the category of the incident.

OSHA Form 300A Summary of Work-Related Injuries and Illnesses

The OSHA Form 300A is a summary of the workplace injuries and illnesses that are listed on the Form 300 for the calendar year. The summary does not include any personal data such as employee names or incident descriptions. This is the document that will need to be posted in your workplace.

OSHA Form 301

Each injury or illnesses listed on the Form 300 must have a corresponding Form 301. The Form 301 includes specific information describing how the injury or illness occurred. Employers do not need to submit this form to OSHA, however, they must keep Form 301 in their records for at least five years after the incident occurs.

Posting Deadline – February 1st through April 30th

OSHA 300A Summary

Employers will need to post OSHA Form 300A in “a conspicuous place or places where notices to employees are customarily posted,” (1904.32 (b)(5)) between February 1st and April 30th each year. Be sure that the annual summary is not altered, defaced, or covered by other material throughout the posting period.

Submission Deadlines – March 2nd

OSHA 300A

Employers with 20 - 249 employees in an industry listed in Appendix A to Subpart E of 29 CFR Part 1904 or employers with 250 or more employees who are not listed in the Exempt Industries list in Appendix A to Subpart B of OSHA’s recordkeeping regulation of 29 CFR Part 1904 are required to submit the information from the OSHA Form 300A by March 2nd.

OSHA Forms 300 and 301

Employers with 100 or more employees and is in the industry listed in Appendix B to Subpart E of 29 CFR Part 1904 must submit the information from Form 300/301 to federal OSHA via the ITA by March 2nd.

Submissions must be posted through federal OSHA’s online Injury Tracking Application (ITA) website or your state’s own reporting mechanism if applicable.

Rancho Mesa Resources

Rancho Mesa has a number of resources available for employers who want to stay up-to-date with their OSHA logs.

Injuries and illnesses can be documented via the SafetyOne™ mobile app or QR code-accessible mobile forms to satisfy the Form 301 requirement. Clients can also complete the OSHA Form 300 with each injury or illness case and download/print  the Form 300A Summary using the RM365 HR Advantage portal™.

For more information on how to manage OSHA logs requirements in SafetyOne and the RM365 HRAdvantage Portal, register for Rancho Mesa’s on-demand OSHA Recordkeeping and Annual Reporting Webinar.

Google AI shows “10 or more employees” but if you read the actual requirement, it says “10 or fewer employees.” So, employers with more than 10 employees are required to keep the OSHA logs.

This is not correct. The 300A is just totals of all injuries and illnesses from the 300.

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 effect September 1, 2026, once Insurance Commissioner Ricardo Lara agrees. 

This upcoming change could have a direct impact on your workers’ compensation premium, if you employ workers in any trade subject to the dual wage classifications.

There are 16 dual wage classifications that will affect California Contractors:  

Dual Wage Classifications	Curent Threshold Effective 2024	Recommended Threshold Change	Recommended Threshold
5027/5028 Masonry	$35	+$2	$37
5190/5140 Electrical	$36	+$4	$40
5183/5187 Plumbing/HVAC	$32	+$3	$35
5185/5186 Automatic Sprinkler Install	$33	+$3	$36
5201/5205 Concrete or Cement Work	$33	+$3	$36
5403/5432 Carpentry	$41	+$5	$46
5446/5447 Wallboard Install	$41	+$4	$45
5467/5470 Glaziers	$39	+$4	$43
5474/5482 Painting/Waterproofing	$32	+$4	$36
5484/5485 Plastering or Stucco Work	$38	+$4	$42
5538/5542 Sheet Metal	$33	+$4	$37
5552/5553 Roofing	$31	+$2	$33
5632/5633 Steel Framing	$41	+$5	$46
6218/6220 Excavation/Grading	$40	TBD	TBD
6307/6308 Sewer Construction	$40	TBD	TBD
6315/6316 Water/Gas Mains	$40	TBD	TBD

Data from the WCIRB’s Classification and Rating Committee Meeting on November 11, 2025.
https://www.wcirb.com/sites/default/files/2025-11/20251111_cr_presentation.pdf

In California, certain construction class codes use a dual wage system to separate employees into two tiers:

• Higher Wage – Workers earning at or above a set hourly threshold qualify for lower workers’ compensation rates because statistically these workers have lower claim frequency and severity.

• Lower Wage – Workers earning below the threshold qualify for in the higher workers’ compensation rates because they tend to be less experienced and have a higher frequency and severity of claims.

The WCIRB periodically adjusts these thresholds to reflect rising wages, inflation, and updated claims data. When wages increase across the industry but thresholds stay static, more employees drift into the higher wage threshold which creates an imbalance. Therefore, the WCIRB now reviews and adjusts the thresholds every two years.

In preparation for proposed wage threshold changes, business owners may want to consider implementing the following strategies:

1. Review your payroll and identify employees earning near the current dual wage threshold.

2. Model the impact and estimate how a $2 to $5 per hour increase could affect your premium classification mix.

3. Evaluate wage adjustments by comparing the cost of modest raises against the savings from qualifying for lower workers’ compensation rates.

4. Keep accurate records! Maintain clean timecards and payroll documentation for upcoming audits.

5. Talk with your broker now to help you analyze potential exposure and prepare for your 2026 renewal.

The WCIRB’s Classification and Rating Committee reviewed these proposed increases in a meeting on November 11, 2025 and has approved them as part of the Bureau’s regulatory filing next spring for Lara’s consideration. If accepted, the updated thresholds would apply to policies incepting on or after September 1, 2026.

For any questions relating to how the dual wage threshold increase will affect your workers’ compensation premiums, reach out to me at (619) 937-0174 or jhoolihan@ranchomesa.com.

Three Key Elements in A Fleet Safety Program for Plumbers and HVAC Contractors

Author, Matt Gorham, Account Executive, Rancho Mesa Insurance Services, Inc.

Commercial auto insurance continues to be problematic for plumbers and HVAC contractors as skyrocketing premiums are eroding profitability.

Unfortunately, indicators show that this trend will continue for the foreseeable future. For the 14th consecutive year, commercial auto has posted an underwriting loss, while just the last two years have developed more than $10 billion combined in net underwriting losses.

The primary driver behind these poor results is auto liability. Fueled by third-party litigation funding, social engineering, and shifting views of corporate responsibility, nuclear verdicts have upended the auto insurance marketplace, causing many carriers to re-evaluate their willingness to even offer commercial policies.

For those carriers that are still writing commercial auto, higher premiums and tighter underwriting guidelines are now standard. Along with closer scrutiny of claims history, the quality of a written fleet safety program has become critical to carriers who typically compete in the plumbing and HVAC insurance space.

While there are many components to a strong fleet safety program, there are three key elements that should be included:

1. Personal Use Policy

A company’s personal use policy specifies whether company vehicles may be used outside of work duties, under which circumstances, whether non-employee passengers are allowed, who may drive the vehicle, and whether trailers or recreational equipment may be attached.

A personal use policy may also address whether a company’s employees’ vehicles or non-company vehicles may be used in the course of work, minimum standards for vehicle condition, maintenance regularity and documentation, and personal insurance limits that must be met.

2. Alcohol and Substance Abuse Policy

Alcohol and substance abuse policies outline expectations and consequences for drivers regarding the consumption, possession, or distribution of alcohol, recreational drugs, or illegal substances. These policies will often include drug testing requirements, such as prior to being selected as a driver, random, post-accident, or reasonable suspicion testing.

3. Distracted Driving Policy

Distracted driving policies emphasize the importance of attentive driving and prohibit or limit the use of cell phones, tablets, or other electronic devices. They may also address other activities that divert attention away from driving, such as eating, putting on makeup, getting dressed, or reading while driving.

Specific policies may also be developed in more detail to address hands free cell phone use, practices for looking up directions, or the use of technology that screens cell phone usage.

For these policies to be most effective, it is important for drivers to not only be aware of the policies but to clearly understand them. Discussing these policies with new drivers and periodically throughout the year with all drivers will keep them relevant.

In support of plumbing and HVAC contractors, Rancho Mesa has developed a library of weekly driver-specific safety toolbox talks, providing key topics to further conversations about safe driving practices. The extensive safety library is accessible within the SafetyOne™ platform and by subscribing to the weekly Driver-Specific Toolbox Talk emails.. SafetyOne also provides the tools necessary to implement a company’s Fleet Safety Program.

Another crucial factor that determines the effectiveness of these policies is consistent enforcement. When drivers understand that there are consequences for breaking company rules, they are more likely to adhere to them, especially if their livelihood is at stake.

While cameras, GPS tracking, and telematics have gotten a lot of attention in recent years, these tools, while powerful, simply provide information. Cameras do not make drivers better; they just show what drivers are doing behind the wheel. Similarly, GPS and telematics do not make a driver safer; they just show where vehicles are and how fast they are being driven. The company must review the data and take action, when needed, to ensure these tools are effective.

Defining, discussing, and enforcing clear policies that govern the safe use of company vehicles reinforces safe driving habits and decision making by individual drivers. It can also help to create a company culture that elevates the status of drivers, celebrating the fact that driving is a privilege that comes with responsibility.

While auto insurance premiums are expected to continue rising, there are actionable steps that can minimize increases and avoid costly accidents that impact your profitability, your productivity, and your people.

If you have questions about your fleet safety program or want to learn more about the strategies that we are leveraging to help our mechanical contractor clients navigate this challenging market, reach out to me at (619) 486-6554 or mgorham@ranchomesa.com.

Using Rancho Mesa Resources to Prepare Drivers for Winter Weather Conditions

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Temperatures are beginning to drop across the United States, exposing companies to a number of dangerous weather conditions. Depending on where your company performs work, employees will encounter rain, ice, snow, and fog while performing job duties. This is especially dangerous for drivers, who for the coming months, will need to safely navigate the change in weather patterns. Additional training and accident preparedness is essential to keep employees safe behind the wheel. Rancho Mesa has resources available for both training and accident reporting.

Driver Training

The best way to prevent an accident is to properly train your company’s drivers. If a driver knows what obstacles to expect on the road ahead of time, and is properly equipped with the knowledge on how to handle them, the likelihood of an accident occurring can decrease significantly. Before placing any employee behind the wheel, it is a best practice to provide them with adequate training which can be accessed by Rancho Mesa clients through our SafetyOne™ platform.

Comprehensive driver safety training is available through SafetyOne’s Learning Management System in both English and Spanish, and covers the basics of driver safety as well as defensive and distracted driving.

Driver Toolbox Talks

Additionally, 52 driver-specific toolbox talks are available through SafetyOne in both English and Spanish. These toolbox talks can be used as weekly reviews of safe driving practices during the winter months. Available topics that cover winter weather conditions include:

• Driving in Fog & Low Light Conditions for Company Drivers

• Driving in High Winds for Company Drivers

• Proper Use of Headlights and Signals for Company Drivers

• Speed Management for Company Drivers

• Weather-Related Driving Hazards for Company Drivers

Subscribe to Rancho Mesa’s free weekly Driver Safety toolbox talk emails to start receiving driver safety meeting content directly to your inbox each week.

Vehicle Accident Report

Even with adequate training and preparedness, accidents may still occur. In the event of an accident, Rancho Mesa has resources available to help clients address the issue.

An Automobile Accident Report is available through SafetyOne. The report outlines the steps an employee should take once they have been involved in an accident, and allows the employee to record important information including vehicle information, injuries, witnesses, and photos.

Injuries caused by auto accidents can also be recorded in a company’s OSHA 300 logs for end-of-year reporting using the RM365 HRAdvantage™ portal.

Adequate training can help to reduce accidents for company drivers when weather conditions like snow, rain, or fog make driving difficult. If an accident does occur, employees should be prepared to handle and report the situation. Rancho Mesa’s resources streamline both training and reporting to ensure a safer winter season for our clients. To learn more about training and reporting resources, reach out to your client technology contact.

Mitigating Risk on the Move: The Case for Third-Party Subhauler Agreements

Author, Sam Clayton, Vice President, Construction Group, Rancho Mesa Insurance Services, Inc.

Street and road, general engineering and trade contractors understand the importance of having a written and executed subcontract agreement in place when using different subcontractors to complete a project. This agreement serves to protect both parties by clarifying responsibilities, managing risk and providing legal protections in the event of a dispute. 

However, many of these same contractors will overlook having a subcontract agreement in place for third-party subhaulers or what is called a subhauler agreement. If you hire a third-party to move a piece of heavy equipment or use someone to import/export material from a project, we recommend implementing a subhauler agreement. While this type of exposure will not affect the project once it reaches its final intended use (i.e., completed operations), it may have an impact during the construction phase. 

For example, if a street and road contractor needs to import or export material, they contact a subhauler to let them know that they will need two dump trucks running eight hours a day for one week. On the first day, they enter the jobsite and accidently hit a pedestrian because they are unfamiliar with project site. That individual will more than likely obtain legal representation and file suit against the subhauler who caused the bodily injury and will more than likely name the street and road contractor as well.

In order to protect and transfer the risk in the scenario above, we recommend working in conjunction with your legal counsel to establish a written subhauler agreement to include:

1. Scope of work

2. Indemnification – subhauler agrees to protect and indemnify contractor

3. Insurance requirements – general liability, workers’ compensation, commercial auto, excess/umbrella and pollution

4. Equipment and maintenance – subhauler must maintain its own equipment, pay for all related charges/expenses and ensure compliance with all regulatory requirements and licenses.

5. Safety – subhaulers are responsible for hiring qualified and safe drivers and show that they have protocols in place to monitor drivers.

In today’s legal environment, it is imperative that companies understand their potential exposure to risk. Those that can successfully implement and manage both their subcontract and subhauler agreements will not only protect the assets of their companies but also receive more favorable insurance pricing and improve their risk profile.

If you have questions about your subhauler risk, contact me at (619) 937-0167 or sclayton@ranchomesa.com. 

Workplace Etiquette Guidelines for New Employees and Those New to the Workforce

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Starting a new job brings opportunities to learn and grow, but it also can be challenging for new employees to navigate if they are unprepared. Understanding proper office etiquette is key to finding success in the workplace. Office etiquette can include behaviors, communication styles, and social norms that can help maintain a respectful and efficient work environment.

Every workplace is different. So, to help new employees and those just beginning their careers, here are some essential office etiquette tips every employee should know:

1. Professionalism & Attitude

• Be punctual. Arrive on time for work, meetings, and deadlines.

• Take ownership. Follow through on tasks and meet commitments.

• Be adaptable. Welcome feedback and stay open to learning new things.

2. Communication Etiquette

• Use professional language and avoid slang. Be polite, clear, and concise in emails, chats, and meetings.

• Write effective emails. Include a subject line, greeting, and signature; proofread before sending.

• Be meeting-ready. Come prepared, avoid multitasking, and respect others’ time.

• Listen actively. Pay attention, don’t interrupt, and show understanding.

3. Respect & Collaboration

• Respect boundaries. Be mindful of personal space, noise levels, and others’ time to focus on their work.

• Work as a team. Offer help, share credit, and communicate openly.

• Handle conflict professionally. Address concerns calmly and privately.

4. Technology & Digital Conduct

• Follow company IT policies. Use devices and software responsibly and as directed.

• Keep it professional online. Maintain appropriate email signatures and chat messages.

• Limit distractions. Avoid excessive personal phone or social media use during work hours.

• Protect confidentiality. Do not share client or company information without permission.

5. Workplace Behavior & Environment

• Keep areas clean. Tidy up after yourself in shared spaces like the kitchen and restrooms.

• Be considerate of noise. Use headphones and maintain a respectful volume during conversations.

• Dress appropriately. Follow the company dress code and represent the company well.

• Use breaks wisely. Take appropriate breaks and be mindful of your schedule.

6. Office Culture & Participation

• Engage with the team. Attend meetings, trainings, and events.

• Understand the organization’s structure. Follow proper channels when communicating or escalating issues.

• Ask questions. Learning is encouraged and don’t hesitate to seek guidance.

• Don’t be the story. Represent the company professionally whether in person, by phone, or online.

• Be present. Turn your camera on and participate actively in virtual meetings.

• Stay accessible. Keep calendars and chat statuses updated.

In addition to this list, a Professional Etiquette online course is available through Rancho Mesa’s RM365 HRAdvantage™ Portal, and is a great resource for new employees or can be used to remind current employees of company expectations.

Practicing proper office etiquette is about more than just following the rules, it is a way to show respect and consideration for others. When employees communicate effectively and respectfully, behave professionally in person and online, and collaborate with coworkers, they help create a workplace where everyone can thrive. No matter where you are in your career, staying mindful of these guidelines can lead to a more productive and enjoyable work environment for you and your entire team.

Beyond Blood Sugar: How Diabetes Impacts Workers’ Compensation Claims

Author, Kevin Howard, Partner, Rancho Mesa Insurance Services, Inc.

November is National Diabetes month and a chance to pause and think about prevention, early detection, and long-term care. For companies, it is also a reminder that chronic health conditions can quietly influence safety, mental health, work performance and even workers’ compensation exposures.

A Closer Look at Diabetes

Diabetes is a long-term condition that affects how the body turns food into energy. When insulin is not produced or used properly, blood sugar stays too high and starts to damage blood vessels and nerves.

Roughly 38 million Americans live with diabetes, and another 97 million are in the pre-diabetic range. This is equal to one out of every three adults in the country. I am sure many readers including myself, are close to someone who is battling this condition. I am glad to shine some light on important details regarding diabetes and how this condition can create a worker’s compensation scenario/claim.

Crossing Into Workers’ Compensation

Most of the time, diabetes is considered a personal health issue. However, under California law, it can become compensable when credible medical evidence shows that job duties or an industrial injury worsened, triggered, or complicated the condition. A few examples of this include:

• A cut or puncture wound that heals slowly because of diabetes, delaying the employee’s return to work.

• A steroid prescribed for an accepted industrial injury that causes a diabetic episode.

• Rotating shifts or high-stress work that demonstrably throw off blood-sugar control.

• Foot or toe injury that has a heighted pain level if the worker is diabetic.

The standard test remains whether the condition arose out of and in the course of employment which is a decision that depends on medical documentation and timely reporting. Similar to any other claim scenario, the more information gathered, the better chance your carrier will have to determine if the condition worsened or arose from the course of employment.

What Supervisors Can Notice Without Diagnosing

For all business owners, supervisors and or safety directors are in a good position to spot potential trouble. Watch for employees who appear unusually tired, shaky, or disoriented, who take frequent breaks for water, or who suddenly have blurred vision. If you notice something is off, pause the task, call first-aid or 911 if necessary, and then notify HR or your claims contact. Do not try to label the condition; just keep the scene and your employee(s) safe.

Rancho Mesa’s Approach

Rancho Mesa  works with carefully selected workers’ compensation carriers and medical provider networks that understand complex health conditions like diabetes. Our in-house Claim Advocate, Jim Malone, brings deep field experience and a calm hand when claims become complicated. He assists clients and coordinates with adjusters and medical providers so cases move forward in full compliance with California regulations.

Four Practical Next Steps for your Team

1. Refresh supervisor training on health-related safety responses.

2. Make sure every manager knows how and when to deliver the DWC-1 form.

3. Double check that medical and personnel files are stored separately.

4. Reinforce wellness initiatives that make blood sugar management easier during work hours.

Diabetes is a complex pre-existing condition that can create complications with workers’ compensation claims. Like many other comorbidities, it can affect an employee’s recovery and overall productivity.

Reach out to me via email at khoward@ranchomesa.com to learn more about how Rancho Mesa’s approach can mitigate these challenges at your organization.

About the Author
Kevin Howard is a Commercial Insurance Broker at Rancho Mesa Insurance Services, Inc., specializing in risk management and insurance solutions for artisan contractors including solar, roofing, and other skilled trades. Based in San Diego, California, Kevin serves contractors throughout the Southern California region, helping them protect their businesses with tailored coverage and proactive support. His clients benefit from access to exclusive tools like the SafetyOne™ Platform, RM365 HRAdvantage™ Portal, and workers’ compensation claims advocacy services, designed to improve safety, streamline HR processes, and support better claims outcomes.

California Employment Law Updates for 2026

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

As California’s 2025 legislative session comes to a close, changes are coming to the state’s employment law landscape.

Governor Gavin Newsom has made his final decisions on a number of bills which introduce changes to workers’ rights, paid family leave, and recovery of lost wages, among others.

Some of the changes employers should be aware of for 2026 include:

Workplace Rights (SB 294)

Beginning February 1, 2026, Senate Bill 294 requires employers to provide an annual written notice informing employees of their rights, and requires an employer to notify the employee’s emergency contact if they are arrested or detained while at work.

Paid Family Leave (SB 590)

Beginning July 1, 2028, employees will be eligible to receive paid family leave benefits to care for a seriously ill “designated person” which can refer to any blood relative or someone who is deemed the equivalent of family although not related by blood.

Wages and Equal Pay Act (SB 642)

Senate Bill 642 updates the definition of “pay scale” in job postings, redefining it to mean “a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.”

This law also extends the statute of limitations for pay discrimination claims to three years and allows potential recovery of lost wages for up to six years.

Personnel Records (SB 513)

Senate Bill 513 expands the definition of personnel records to include training details. This includes certifications obtained from training, the name of the training provider, and the skills covered in the training.

Before these new laws take effect, California employers should begin reviewing workplace policies and procedures to stay compliant. Employers can take advantage of Rancho Mesa’s RM365 HRAdvantage™ to build and update a compliant employee handbook, create policies using sample documents, and receive alerts as laws change.

The laws in this article are only some of the changes employers will need to be aware of in 2026. For a comprehensive discussion of the most important changes to California’s employment laws, register for Rancho Mesa’s 2026 Employment Law Update workshop, happening on Friday, November 21st, 2025 from 10:30 A.M. to 12:00 P.M. at the Mission Valley Library.

Fleet Safety Starts with Strong MVR Guidelines

Author, Greg Garcia, Account Executive, Rancho Mesa Insurance Services, Inc.

One of the biggest liabilities that any landscape company faces occurs every day. This liability has nothing do with planting, mowing, trimming or irrigation work, in fact this exposure begins before any of the actual work takes place. Auto liability continues to be one of the most significant exposures every landscape company takes on when sending commercial vehicles out onto the road.

With increases to annual auto insurance premiums and the market continuing to harden, it is essential for landscape companies to be proactive to help mitigate these rising costs. Many landscape companies are now investing in safety technology such as GPS systems and dash cameras, but also conducting daily vehicle inspection reports to make sure the trucks are suitable for the road.  Implementing strong internal motor vehicle report (MVR) guidelines is another essential way for insureds to improve fleet safety while keeping insurance increases to a minimum. Insurance underwriters and carriers are placing increasing importance on fleet safety programs, and monitoring how a company is being proactive in trying to prevent claims.

Implementing and maintaining strong MVR guidelines is a critical component of any fleet safety program. Before any employee is allowed to drive a company vehicle, their MVR should be reviewed to ensure they have no major moving violations, their driver’s license is active and valid, and they have an adequate history of driving experience. The driving position in any landscape company is critical, which is why MVRs should be reviewed regularly and driver trainings conducted as often as possible.

Rancho Mesa offers a sample Driving Record Review policy through the RM365 HRAdvantage™ Portal to help clients establish their internal review policy. Online driver training courses through Rancho Mesa’s SafetyOne™ platform can also be incorporated into a company’s policy to ensure all drivers are well trained. Anyone can subscribe to Rancho Mesa’s weekly driver-specific toolbox talk emails.   

Building a strong fleet safety program starts with clear MVR guidelines and taking proactive measures that help reduce risk, protect your company from auto liability claims, and help control insurance premiums.

For questions about your auto liability, contact me at (619) 438-6905 or ggarcia@ranchomesa.com.

OSHA Requirements for Weekly Safety Meetings

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Employee safety should always be a priority for business owners, and that means fostering a safety culture throughout the year. Weekly safety meetings are a great way to curb risk on a job site and ensure employees are prepared to handle an unsafe situation at any time.

At the federal level, the Occupational Safety and Health Administration (OSHA) does not require weekly-safety meetings. Even those the meetings are not required, they should be a regular part of an employer’s safety program in order to reduce risk.[BK1] 

Some states do have requirements for regular safety meetings, however. For example, Cal/OSHA requires a safety meeting at least every 10 working days. Employers should check with their state’s OSHA program for a list of requirements for each of the states where they operate, in order to stay compliant.

For employers, weekly safety meetings serve as an opportunity to check in with employees, mitigate hazards, and protect the business. For employees, they are a chance to ask pressing safety questions, learn important safety techniques, and serve as a reminder of proper procedures on the job site.

Here’s how to run an effective safety meeting:

1. Make the meeting easy to attend for all employees.

Host the meeting on the job site, at the start of a shift or after a break to increase attendance.

2. Research and choose a topic relevant to your industry.

Rancho Mesa’s SafetyOne™ platform hosts an extensive list of industry-specific topics for landscapers, tree care-professionals, drivers, construction, and general industry workers. For a total of 788 toolbox talk topics to choose from.

If a recent incident or near-miss has occurred on the jobsite, it is a good idea to use toolbox talks to re-enforce safety guidelines, or they can be used as general safety reminders.

3. Make sure the solutions or tips provided are practical and applicable to the jobsite.

Demonstrate proper use of equipment or PPE and safe work practices outlined in the toolbox talk.

Allow employees to share personal experiences as they have likely encountered the hazards or circumstances addressed in toolbox talks.

4. Ask follow-up questions to keep employees engaged.

Most toolbox talks on the SafetyOne platform include questions that can be asked during or after the meeting. These questions reinforce learning and encourage employee participation.

5. Keep the meeting short.

SafetyOne toolbox talks are designed to be covered in an average of 10-15 minutes. Shorter meetings help keep employees engaged and don’t take away valuable work time.

For assistance in accessing Rancho Mesa’s toolbox talk library, contact your client technology team member.

Kidnap, Ransom & Extortion Insurance: A Board-Recruitment Advantage for Nonprofit

Author, Jack Marrs, Account Executive, Rancho Mesa Insurance Services, Inc.

High-caliber directors—retired Fortune 500 leaders, public figures with reputational exposure do not join boards on faith. They review bylaws and audited financials, D&O policies and look for a solid approach to managing risk. Then they ask a practical question: “If I am targeted because of my role or if I travel on the organization’s behalf, how will you protect me and my family?” Having Kidnap, Ransom & Extortion insurance answers that question. It shows your organization has thought ahead and lined up real help if something goes sideways—not after the fact. And if you are trying to bring on seasoned, well-connected board members, that goes a long way.

What Does KR&E Provide?

KR&E solves two problems at once. First, it provides immediate access to specialist crisis-response consultants, 24/7, who help manage live incidents such as kidnapping, extortion (including threats), wrongful detention, hijacking, disappearance, and hostage events. Second, it reimburses costs such as crisis-consultant fees, security and medical expenses, travel and accommodations, and ransom/extortion payments. AIG’s CrisiSolution is a representative market offering with broad peril definitions, global reach, and round-the-clock support designed for organizations with people on the move.

A nonprofit with an AIG KR&E policy is not improvising translators, legal contacts, or tactics in an unfamiliar country. It comes with worldwide coverage and a 24/7 crisis-response team, people who speak the language, know local laws, and give directors confidence before they agree to joining your board.

Why Do Top Board Candidates Care about KR&E?

Seasoned directors evaluate mission and risk together. They want to see robust D&O, travel-risk protocol, and KR&E where international work may create exposure. When you can say, “Yes, here is our KR&E, our 24/7 number, and how it integrates with our travel policy,” you make it easier for the people whose time and networks you value to say yes. When you are recruiting, KR&E is a dead-giveaway that you take director safety seriously. If it is missing and your mission carries obvious risk, you are essentially asking directors to take on significant personal exposure without the right tools. The best candidates will not accept that risk.

Where Do Non-Profits Feel the Most Risk?

• International site visits and program launches. Work in parts of Latin America, East Africa, the Middle East, or Southeast Asia can increase the exposure

• High-profile Board and advisory members. Public figures and major donors can be targeted for their wealth or their influence.

• Fundraising travel and donor trips. These are exactly the kinds of situations KR&E is built for and it brings two things you need fast, people on the ground who know exactly what to do, and money to cover the costs so things do not spiral.

How To Present KR&E During Board Recruitment

1. Be upfront that Board service can involve travel and being in the spotlight. Your nonprofit has invested in protection to support directors and their families if something goes wrong.

2. Be specific about resources. Share the 24/7 hotline and what the response team actually does in the first hours—coordinating with authorities, retaining local counsel, managing secure communications, and arranging logistics.

3. Walk through pre-trip risk reviews, itinerary controls and emergency contacts.

Bottom line

KR&E alone will not close the deal, but it clears a major hurdle for top candidates who want straight answers and solid safeguards. If you want proven leaders on your board, make KR&E non-negotiable. Tighten up your travel-risk plan, give Rancho Mesa a call to learn more about AIG’s CrisiSolution. That alone can flip a hesitant maybe to a solid yes.

To learn more about how Rancho Mesa can support your organization’s needs, contact me at (619) 486-6569 or jmarrs@ranchomesa.com.

Avoiding Halloween Horrors: Tips for a Workplace-Friendly Halloween

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

Halloween is a fun and festive time of year, and many companies will choose to celebrate with decorations, costumes, and themed events. While embracing the holiday spirit in the workplace can boost morale, it’s important to prioritize safety, for both employees and clients. A thoughtful approach can ensure that Halloween celebrations remain inclusive, appropriate, and risk-free.

Do:

1. Have Clearly Outlined Policies in Place

A costume policy is not a requirement in a workplace, but it can help keep employees and clients safe. Remind employees that costumes and props can get caught in large equipment or machinery and cause injury. Avoid using open flames like candles or decorations that block emergency exits or create tripping hazards. Costumes can be a fun way for employees to express themselves, but should not interfere with the safe performance of work tasks.

2. Remind Employees of Proper Etiquette

Remind employees of company rules and guidelines ahead of time. One way to do this is to share a company-wide reminder detailing what is allowed and not allowed in your workplace. Make sure employees know if and when they are allowed to dress up, and what items they are prohibited from bringing to work, such as fake weapons or masks that can obscure identity.

3. Establish a Process for Reporting Issues

If an incident does arise, ensure there is a clear process for reporting and addressing issues. Have a plan in place in case of any unforeseen emergencies, and make sure temporary decorations do not interfere with emergency signage or escape routes.

Don’t:

1. Allow Offensive or Inappropriate Costumes at Work

Employees should be reminded that, if they choose to dress up in the workplace, professional expectations remain the same. Costumes that make fun of protected classes should be avoided. Employees should be reminded to steer clear from political costumes and outfits that show too much skin. Client-facing employees should have costumes and/or decor that reflect professionalism.

2. Force Employees to Participate in Workplace Celebrations

Some employees may choose to abstain from Halloween celebrations, including dressing up in costume, decorating their workspace, or participating in activities. Their decision not to participate may be for religious, cultural, or personal reasons. Employers should allow employees to opt out of any and all Halloween activities. Celebrations should also consider accessibility. Decorations or events shouldn't create physical obstacles that might be unsafe for employees or clients with mobility issues.

Rancho Mesa’s RM365 HRAdvantage™ is a great resource for Rancho Mesa clients who have additional questions about how to ensure their company is celebrating Halloween safely and professionally, or how to respond to an HR issue.

Private Equity and Bonded Contractors: Building a Foundation through Communication

Author, Andy Roberts, Surety Group Leader, Rancho Mesa Insurance Services, Inc.

Private equity firms have been actively purchasing construction companies. For the firms that are acquiring the construction companies that perform bonded work, it is highly important that they know there is a stark difference between how surety companies underwrite standard construction bond programs and how they underwrite private equity-owned construction bond programs. Matt Gaynor discussed this in detail in a previous article. Because of these differences, it important that the firms involve their agent and surety company early in the acquisition/due diligence process. This is to ensure the firms know the specific information that the surety company will want to see in order to advise regarding the impact the acquisition will have on the bond program.

As noted in the previously linked article, the financials from private equity-owned companies often carry more debt due to acquisitions, which often leads to a net loss on the income statement. It will be important that the firm can present a pro forma financial so the agent and surety can see how much the debt and goodwill will impact the statement going forward. If there is significant degradation, it can impact the amount of support the surety company may offer. 

Additionally, review of the work in progress (WIP) and backlog to identify how much of the work is bonded, or will need to be bonded, will be equally important. If the company that is being acquired relies on bonded work as their primary revenue source, an inability to get bonds after the acquisition would be detrimental to the business. For the current surety partnered with the company being acquired, it is important to know what their appetite for writing bonds is within the private equity space, and also how long the current management/ownership team will be staying on board to help with the transition. This last point is of the most importance, because the longer the involvement of the previous team, the smoother the transition tends to be.

For the private equity firms that are acquiring companies that rely on bonded work for their revenue, open and clear communication is critical between the firm, their surety agent and surety company. Knowing the questions that will be asked and what information the surety will want to see will help determine if the contractor can continue to get bonds post acquisition.

For questions on this or any other surety matter, please contact me at (619) 937-0166 or at aroberts@ranchomesa.com.     

Preparing the Next Generation of Construction Leaders

Author, Casey Craig, Account Executive, Rancho Mesa Insurance Services, Inc.

This year has brought significant challenges for many of our clients. Amid economic shifts, project delays, and labor uncertainty, one concern has become increasingly common in conversations with construction leaders: the difficulty of attracting qualified younger employees and the growing struggle to replace retiring leadership.

The aging workforce in the construction industry is part of a broader trend that has been developing for decades. According to the U.S. Bureau of Labor Statistics (BLS), the median age of construction workers has steadily increased from 38 in 2000, to 41 in 2010, and now 42 in 2024. As experienced professionals near retirement, many companies are facing a critical leadership gap, without a strong pipeline of younger talent to step into those roles.

Not only are there fewer young workers entering the construction industry who can grow into leadership roles over time, but the current aging workforce typically brings increased claim frequency and severity, elevating both operational and insurance costs.

How can construction companies proactively address this issue and build strong, future-ready leadership teams?

• Support a local construction-focused outreach organization
  There are many organizations across the U.S. that are actively working to promote the industry to younger generations. In San Diego, for example, the Future Construction Leaders Foundation (FCLF) provides opportunities for young people to investigate the construction industry as a potential career. Listen to our podcast episode #510 where FCLF talks about their mission to inspire the next generation through hands-on programs, impactful camps and mentorship.

• Educate young people on real earning potential
  Offer to speak at a local high school or community college about the strong wages available in the skilled trades, especially compared to many entry-level roles.

• Promote the advantage of debt-free career paths
  With local students, emphasize the ability to earn while learning, with little or no student loan burden.

• In job posts, position construction as a stable alternative to shrinking remote work opportunities
  As remote work availability declines across many sectors, construction offers reliable, location-based work with long-term security.

• Define clear growth paths within the company
  Young employees need to see what their future looks like if they were to stay with your company, long-term. Invest in mentorship, leadership development, and transparent career progression plans.

Some potential young employees may not see construction as a viable career path. To attract the best of the youth, they need to see construction as a career opportunity. While this is not an easy issue to fix, it is becoming more and more relevant. Staying ahead of this issue is paramount to the strength and viability of your company’s futures.

If you have any questions related to this topic or any other insurance issue, please feel free to reach out to me directly at (619) 438-6900 or email me at ccraig@ranchomesa.com.

Insuring the Future: AI Tools for Modern Brokers

Rancho Mesa President David Garcia sits down with Erik Vandermaus, Executive Vice President with BrokerPRO, a data and insight company that’s transforming the insurance industry, to discuss how their technology is empowering brokers to streamline workflows, personalize client interactions, and stay competitive in a rapidly evolving market.

Dave Garcia: Hi everyone, you're listening to Rancho Mesa's Studio One podcast, where each week we break down complex insurance and safety topics to help your businesses thrive. I'm your host Dave Garcia, and today I'm joined by Erik Vandermaus. He's the Executive Vice President with BrokerPRO, and today we're going to discuss this platform and what's on the horizon with it. Erik, welcome to the show.

Erik Vandermaus: Thanks so much, Dave.

DG: So, Eric, let's just jump right into this thing. What led you and your team to start BrokerPRO?

EV: Well, I really appreciate the opportunity here. And it all started with our president, Nezih Hasanoglu's vision back in 2023 to create an insight and automation company that would do just that, bring solutions to brokers that would more effectively harness, leverage, and monetize their data and then share that high quality trusted data with other like-minded brokers to create a national benchmark across P&C, EB, and other areas.

So Nezih is our president of BrokerPRO and then I lead our data product development efforts. And about two years ago, two and a half years ago, I was a managing director at Accenture, which is a global tech consulting firm, and I was creating those same data analytics, digital and CRM solutions for my clients in the insurance industry.

DG: Okay.

EV: And so now I get to bring those same technologies to the broker space.

DG: Awesome.

EV: Yeah, it's been such a blast to work with Nez and others in the space. And the key for me has really been the ability to make an impact and deliver value to those at the trading desk. Those that are producing and need an edge to increase their win rates, go up market, and free up time so they can spend more of it with their clients.

DG: So in working with Nez and looking around and doing your research, what were some of the biggest frustrations or inefficiencies you saw brokers facing in the insurance marketplace today and how do you think BrokerPRO’s going to be solving some of them?

EV: Yeah, great question. BrokerPRO is a data and insight company. And our mission is to digitally enhance the client experience by harnessing and leveraging data for value at the trading desk. And so we start with a phrase by brokers for brokers, meaning that it's in our DNA, our funding, our leadership is from the broker space. And why does that give us an edge? It means we're close to the problems because we see them when we walk down the hall and see someone spending hours creating a benefit guide, or see someone using other generative apps that really aren't tuned to the specific task and are inherently just not going to be as accurate as some of our solutions are. And so what we see for biggest frustrations, inefficiencies at the trading desk, there's so much unnecessary times moving things around, taking data from here to there, spending 10 hours creating a benefit guide, as I mentioned, or comparing two policies or a quote to a policy, or spreadsheeting information. It's time that could be freed up. And so this is why we created one of our products called GenPro, which I'll talk more about.

And second, brokers can no longer rely solely on the strength of their relationship with a prospect or client to win and keep their business. Yes, relationship will always be critical, but not sufficient. And that's really because of the buyer of today. And, you know, that new CFO, that's 35 years old, they went through college during the 2008 financial crisis. And they were trying to find their first job around that time. And that has significantly shifted how brokers need to approach them, more towards a strategic risk-aware partnership mindset. And they value resilience, data-driven insights, and long-term value. And so that's how we need to meet them, where they're at. And that's what BrokerPRO is doing.

EV: So you mentioned a lot of things there. And your customers will be brokers like Rancho Mesa, and other agencies across the country. And then we'll be able to deliver these benefits to our customers and clients and hopefully talk to prospects about the benefits of things as well. So is there, is that, do you have any success stories that I know, you know, what's the genesis of BrokerPRO? How long has it been out in the marketplace? And then maybe you can share a couple of success stories with us today.

EV: Yeah, we just started with our marketing efforts this year and we have six brokers on platform now and we're growing. And back to that CFO, they want a national benchmark and that trading desk wants efficiency. That's what BrokerPRO is solving for. And so I'll give you some numbers, success stories: 31, 106, and 20.

First, riffing off that national benchmark comment, producers that use BrokerPRO's data products see new business win rates 31% higher than those that don't.

What's more, producers that use our data products see their average win amount 106% higher than their peers. And that's because they're using data products within the pro suite benchmark, national benchmarking for P&C as well.

And a producer recently who was doing a P&C renewal, client wanted to change carriers. They weren't happy with the carrier from a work comp. claims perspective. But the producer was able to bring this trusted national benchmarking to show that their rate is lower than their peer. They argued that they shouldn't go to market and that the client immediately agreed. So again, back to that CFO, they want to see data to back up the recommendation.

Even more, brokers need to free up time. And so 20 comes from freeing up 20% of time at the trading desk when our generative AI GenPro is used. Users are saying that it's saving them on average an hour and a half per day. And that adds up over a week, that's 20% of your time for the week.

DG: So I know we're going to discuss some of the products specifically here in a second Erik, but I'm curious you've mentioned a lot about the producers and the impact to them. Do you see this as a tool that the client management staff will use as well? Maybe you can share a little bit about how they're using this in their day to day. I'm sure it's saving them time too.

EV: I love it. Yeah, absolutely. Yes, 100%. So GenPro, our generative AI app is tuned for the work that a client manager is doing all day long. And that's where we see the greatest use. And that that's where we see that hour and a half savings per day.

For an example, I was I was on with one of our subscribers. And the client manager was talking about a benefit guide accuracy check she was doing and she put it through GenPro and she found another claim in the template because the template is often reused. It happens and her manual check wouldn't find it but GenPro found it. Saved her a lot headache.

DG: Oh for sure. Yeah that's great. You mentioned GenPro. What else is contained in the BrokerPRO model?

EV: Yeah we talk about our pro suite starts with GenPro. That's private, secure, generative AI. It's tuned to perform like an insurance broker's assistant, and it's been configured to be accurate. So unlike Copilot or other Gen AI apps, we've turned its creative abilities all the way down. It is focused on accuracy and to sit alongside you, and that's what's driving the time savings. It's so fun to hear the users when they get into it, “It saved me 10 hours here. This is what I was doing.”

So, really fun and exciting to see what they're doing with it.

DG: Erik, you'll quickly recognize I am not a tech leader like you are. So, let me ask a couple of questions at my level of tech understanding. When we talk about GenPro, I'm concerned that you always hear, at least that I hear, is that somehow we're going to let information out of our office, out into wherever that goes, making it accessible to other types of AI products, can GenPro go out of the system to seek information, other than agency information?

EV: Great questions. The answer to the first question, no, it cannot leak data out because we take a copy of the large language model. And so whenever you're interacting with it, it's using a copy that it's talking to.

DG: I see.

EV: So that public model is never able to see anything you upload to it. So that's a really important piece. Users also have self-contained security. They can only see their own documents, et cetera. We don't want it to go out and find data externally. I will caveat that to say, though, although we are and we do have the ability to ask or have GenPro look at files coming from the AMS. So for example, one subscriber has over four million files that they've downloaded from Epic and GenPro is able to look at those and use those, but it's all contained, self-contained within that subscriber.

DG: Okay, so many of us—Epic for the audience is an agency management system that many agencies probably the 75% probably of the agencies in the United States use Epic. So what we're saying then, Erik, is that GenPro and Epic can communicate with one another? So the information that's in Epic is accessible to GenPro?

EV: Correct, it is.

DG: Okay. I'll tell you, as the agency owner here out in Southern California, that is one of our biggest needs is to, we've got these sources of data, whether it's in our agency management systems, on Excel sheets or wherever and finding some kind of a product that can talk with each of those and extract data from it and then put it into some usable, readable tool is huge.

EV: Yeah, so exactly.

DG: And maybe that kind of leads to my next question. How does BrokerPRO kind of stand apart from all these other insure-tech products? I get an email a day, you know, from the next greatest, you know, insure tech product. How does BrokerPRO stand apart from all of those?

EV: Indeed, there's so many options out there and brokers are spending so many hours just evaluating solutions and weeding through it. Here's BrokerPRO's superpower that cuts through all that. We're by brokers for brokers. By brokers for brokers. We were born from a top 50 broker here, M3 insurance. That gives us a tremendous edge over other insure-techs by being close to the problems that brokers face.

That said, we're also independent and we operate separate from the parent. And so we've solved the national benchmark data problem with high quality trusted data and efficiency with GenPro. And now if you start to put those two together, high quality national benchmarking with Generative AI, if you start to mix and match those tools, which you can do on BrokerPRO, that becomes a competitive edge over these other insure-techs that only do one or two or three things separately. We can mix and match those together.

DG: So Erik, as you grow this membership, I think you mentioned currently have six or seven agencies that are now BrokerPRO subscribers. Is there any abilities to use the data within that group as a benchmarking tool for all the members without obviously being account specific or something like that?

EV: Absolutely that's the beauty of our benchmark pro products both for P&C and employee benefits and that's the beauty of the BrokerPRO platform because we're able to share data with like-minded firms. And we de-identify, we anonymize that data so you can't see the actual name of that client, but you can benefit as a broker by calling up what that national benchmark looks like when you are competing for business and you want that broader perspective.

DG: Yeah, that's a big help for agencies like ourselves. As I mentioned, we're in Southern California is where our corporate offices are, but we do business in 22 different states, and you roll into a state that you're not familiar with, you've got an opportunity there, you really don't know the marketplace, what carriers are really active there, and what are not. So it sounds like this tool would be a big asset for us to say, “Hey, we're looking at a plumbing contractor in Missouri, can you give us an idea of which carriers are being active in that marketing space?”

EV: Yeah, and you can trust it because you know where that data came from. You know that that peer firms that aren't competitors with each other, but we're sharing data in order to help each other win against the national firms that just have national benchmarks just based on their size.

DG: Yeah, so, you know, I'm going to be selfish here for a second because this next question probably Fits myself and our agency, you know spot-on but give me a piece of advice that you give to other brokerage agency leaders like myself who are working on their AI strategy within their own firm. Most of us do not have somebody like Erik that we can just say, "Hey, Erik, can you look into this for us?"

What advice can you give me or give us all?

EV: Yeah, absolutely. So if you're evaluating insure-tech and AI, which most of us are, you're in this endless loop of analysis. There's just so many options. So I encourage you to prioritize the platforms that are scalable enough on the number of use cases they can solve for you versus having to evaluate and buy a separate solution for every use case problem you face. And that is one of the major benefits of BrokerPRO because we've got close to the problems, and we're able to see across those areas, P&C and EB then mix benchmarking with AI together. If you focus on those things, that will really accelerate your time to value in your shop, and selfishly, it will also lead you to BrokerPRO.

DG: Yeah, right, sure. Well, you know, I think, you know, I've had a few conversations about this, so you enlighten me to a lot, and I like the idea of kind of reverse engineering the needs basis, like what's the outcomes? What's the output we're looking for? And then is that something BrokerPRO can do? And if so, how does that works?

So--versus, and we've already sat through a number of different meetings with different other vendors and it's overwhelming, you know, they can all do everything, most of it we don't need and you get confused. And then, you know, I don't know if this is a real term when I made up, but I feel like there's AI stacking, you know, where you start laying product on top of product on top of product, and you don't know which one's doing what the best. So, sounds like BrokerPRO’s, I like the idea that it's reverse engineered from the broker standpoint. You know, it's written by our needs, and that's a consensus of needs. And then with the growing group of members, there's probably going to be new needs that are going to apply to all of us to help us. So that makes a lot of sense. So Erik, before we wind down, where's BrokerPRO going next? What are you guys working on? Give us a little tip.

EV: So, you know, even if your agency is growing 10 to 15 percent a year, there's likely friction points all over your agency, slowing you down from even that next level of growth. So think about all of those friction points. One of those that we've heard from our subscribers is benefit guide creation. We all know that it takes so long to create those things, and one client may have 10 different files that a client manager, someone at the desk, needs to look at to create one of those benefit guides. And so, how can you take that 10 hours of manual creation and use AI to bring that down to let's say an hour? We're solving that problem. We're actively in development on that. I can't wait to bring out to our subscribers to show them what we can do.

DG: So a little tease there, a little something coming. Stay tuned for the first episode of next season, sounds like. That's awesome. Anything else in the pipeline that you can mention or feel comfortable mentioning?

EV: Yes, there's so much on our roadmap and so many things that we're working on, but it's really important for us to prioritize based on what our subscribers are asking for. That is one of them, but there's a couple others that are on the burners right now.

DG: Okay, great. Well, listen, Erik, I've really enjoyed the time today. It's been super informative. We're looking forward to you and I and our companies having further discussions for sure, but if listeners that are out there are curious to learn more or to get started with you, what's their best first step? How can they reach out to you?

EV: Yep, go to brokerproai.com, and there's a way to request an invitation, and we would love to talk with you.

DG: Okay, that's is there before we end is there anything else you'd like to talk about or mention before we wrap up today?

EV: It's just, it's been an honor to be able to talk with you and to get this opportunity and we know that now being by brokers for brokers we're talking to those that are in the same boat they're looking for these solutions and it's tough it's tough to read through it so let us show you how we're different and how we're close to the problems that you need to solve.

DG: Great Erik, thanks so much for joining me today in StudioOne. I appreciate it.

EV: Thank you.

DG: And everyone out there, thanks for tuning in to our latest episode produced by StudioOne. If you enjoyed what you heard, please share this episode and consider subscribing. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter. Till next time, take care, bye-bye.

New AI Regulations for California Employers

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

On October 1, 2025 California employers with five or more employees will be required to follow new Artificial Intelligence (AI) regulations.

The amended regulations address the use of automated-decision systems (ADSs) in employee or prospective-hire evaluations, applying existing antidiscrimination laws to new AI technologies.

 Automated-Decision Systems

Employers will be required to comply with the state’s existing antidiscrimination laws when using an ADS. For work-related purposes, an ADS is defined as any computational process that makes or supports employment decision-making, including hiring, promotion, or termination. An ADS may use artificial intelligence, algorithms, or other types of data processing to: 

• Screen, evaluate, or make predictive assessments about applicants or employees, including their skills, abilities, personality or cultural fit.

• Share job advertisements or recruiting materials to certain groups.

• Screen resumes for key terms.

• Analyze observable traits from online interviews, including facial expressions, word choice, or tone of voice.

• Analyze third party data.

Accommodations

Improper use of ADS can lead to discrimination based on disability or religious creed. Individuals with disabilities could be placed at an unfair disadvantage if an ADS evaluates physical abilities or cognitive traits. An applicant’s or employee’s religious beliefs or practice could also conflict with the screening process used by an ADS. Employers should consider whether reasonable accommodations are required in either case before making a decision based on an ADS.

Recordkeeping

Data collected from an automated-decision system must be retained by employers for four years from the date the record was created or the date of the action taken as a result of the ADS, whichever is later.

To ensure your business is compliant with the new regulations, there are a few steps you can take.

1. Retain ADS data for at least four years.

2. Ensure HR and managers are aware of what accommodations for a disability or religious beliefs might be required, when using an ADS in employment decisions.

Resources for staying up-to-date with state and federal laws can be accessed through Rancho Mesa’s RM365 HRAdvantage™ portal. Rancho Mesa’s HR experts are also available for clients to answer specific questions about the new regulations and how they could impact your business through the HR portal.

Maintaining Strong Banking Relationships Supports Surety Bonding Capacity

Author, Josh Hill, Account Executive, Rancho Mesa Insurance Services, Inc.

Having a good relationship with your bank can pay dividends for your business when obtaining bonds from your surety. Managing that line of credit appropriately can be a resource of available working capital which surety carriers likes to see, but when it is not utilized as expected by your bank, it could become a substantial detriment to your operations and ability to secure bonds.

Many established businesses are well versed in what their bank expects from them and what they need to provide in order to keep their line of credit in place, which surety companies like to see. However, many smaller companies who have been in business only a handful of years have not necessarily thought about what they need to do to keep their line of credit in good standing and renewable for the foreseeable future.

Not keeping a line of credit in good standing often happens when banks are focused upstream on middle market companies where their seasoned bankers are dedicated to that space. Newer companies or smaller revenue businesses (i.e., $10MM or less) are often serviced by less experienced bankers that may not coach their clients on bank expectations as outlined in their loan documents to keep that line of credit in good standing.

A common pitfall I have noticed among less experienced bankers in my previous 18-year career as a commercial loan officer was that smaller businesses often did not understand that their revolving line of credit needs to actually, revolve. The line is designed to support short term working capital but when your business is in growth mode, that will deplete working capital and often the line of credit gets utilized to help alleviate cash constraints.

The problem, the line of credit gets maxed out and it stays there becoming, permanent working capital. If this occurs, when the line of credit comes up for renewal, banks will typically look at two solutions; the first is to term out balance on the line of credit over a 3 or 4-year period creating a hefty P&I payment to retire the debt in full; or, if the company is lacking collateral and/or cash flow, they may decide to turn the client over to their special assets division where they will work out a less favorable repayment plan possibly looking at the assets of the business owner(s) for repayment.

No one wants to find themselves in a situation where they need to worry about their ability to obtain bonds from their surety. That is why it is important to have a dedicated banker who understands your business and proactively communicates bank expectations so that as a business owner, you can renew that line of credit at each maturity date. This keeps the surety happy and it will keep you, as a business owner, focused on your business and not a potential workout with your bank. 

If you are a business owner who feels they could benefit from a good relationship banker or has questions about how to build your bonding program, I can be reached at jhill@ranchomesa.com or (619) 798-2819.

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.

In the janitorial industry, where the work is physically demanding and full of potential hazards, these rate increases hit especially hard. But the good news is, with a strong focus on workplace safety, you can help keep your claims down and your premiums more manageable.

The Most Common Claims

The janitorial industry has a unique set of risks that contribute to its workers’ compensation claims, including:

• Slips, Trips, and Falls: Wet floors, cluttered hallways, and stairs can lead to sprains, fractures, and plenty of lost days.

• Lifting and Overexertion: Heavy and improper lifting can cause painful back, shoulder, or knee injuries.

• Repetitive Motion Injuries: Tasks such as mopping, vacuuming, or scrubbing can result in repetitive strain injuries over time. Common injuries include carpal tunnel syndrome, tendonitis, and chronic back pain.

• Chemical Exposure: Regular use of cleaning agents like bleach, ammonia, and disinfectants can lead to rashes, eye irritation, or respiratory issues if workers are not properly protected.

• Cuts and Punctures: Broken glass and sharp edges can cause injuries. While often less severe, these incidents occur frequently and can result in infections.

 The Most Severe Claims

Some injuries may be less frequent but carry a much higher price tag. For example:

• Fall From Heights: Janitors who use ladders are at a higher risk of serious injuries such as fractures, head trauma, or spinal damage.

• Severe Back Injuries: Herniated discs or spinal injuries can sideline an employee for months or even end their career.

• Severe Chemical Exposure: Accidents with strong cleaning agents can cause permanent lung or eye damage.

These types of injuries not only impact your employee’s health, they also drive up insurance costs and are a big factor in the rate increases we are seeing.

Mitigating Common and Severe Claims

Maintaining a safe workplace is not just about compliance, it is also a financial strategy. Fewer claims and losses over time will help you control your premiums even in a rising rate environment.

A few key risk mitigation strategies include:

• Prevent Slips and Falls: Place “wet floor” signs immediately when mopping. Use slip resistant shoes and ensure adequate floor mats are in place.

• Teach Smart Lifting: Provide training on proper body mechanics and lifting methods.  Use carts or dollies instead of manual lifting whenever possible. Encourage team lifting for heavy or bulky objects.

• Reduce Repetitive Strain: Rotate tasks to reduce strains. Provide ergonomic tools such as lightweight mops, backpack vacuums, and adjustable handles.

• Protect Against Chemicals: Train employees on safe handling, storage, and mixing of cleaning agents. Make PPE (i.e., gloves, safety glasses, and masks) non-negotiable. And maintain clear Safety Data Sheets (SDS) for all products.

• Stay Sharp About Sharps: Provide puncture resistant gloves and safe disposal containers for broken glass or needles. Also train employees on safe handling procedures.

Develop a workplace safety program. Rancho Mesa’s SafetyOne™ platform is designed to administer an effective workplace safety program to ensure employees are getting the proper safety training, identifying hazards before an incident occurs, and investigating incidents to ensure they don’t happen in the future.

Final Takeaway

The reality is that workers’ compensation rates are firming in California. Your employees are your most valuable assets. By paying close attention to the most common risks and putting preventive measures in place, you will not only keep those employees safe but will also help minimize your frequency and severity of claims. The result will be fewer disruptions, lower expenses, and a more efficient business. 

Dealing with Employees Who Post Slanderous Videos Online

Author, Jadyn Brandt, Client Communications Coordinator, Rancho Mesa Insurance Services, Inc.

With today’s widespread use of social media, false or damaging claims from a current or former employee can pose serious risks to a company’s reputation. Slanderous online content can include text, videos, or images posted to social media platforms or blog sites that falsely accuse an employer of actions that can damage an individual’s reputation or the reputation of a company.

If a current or former employee is posting slanderous content online about you or your business, there are steps that you can take to prevent damages to your company’s reputation, including documenting evidence, reporting the posts, and seeking legal advice if necessary.

Company Policies

A good way to prevent a current employee from posting content online that could harm your business is to make sure your company has well-established social media use policies. This policy can provide guidance on conduct and define what content is acceptable for employees to share online. A sample social media policy is available through Rancho Mesa’s RM365 HRAdvantage™ portal.

Collect Evidence

If a current or former employee does post content online that you believe to be defamatory, screenshot or screen-record the posts or videos. Take note of the dates and times when they were shared. Having your own record of the slanderous content is important, because if the person making the posts decides to delete them, it will be difficult to recover evidence of the defamation.

You will also need to prove both that the statements made about you or your business were defamatory, and that you or your business suffered real damages as a result of the posts—in the form of financial loss or reputational damages.

Report Defamatory Content to the Host Platform

While social media companies and their sites cannot be held responsible for what users share on their platforms, most social media sites have policies prohibiting harassment and defamation, as well as a reporting process you can use to remove defamatory content. Report the posts directly to the platform where they were published using the platform’s reporting feature.

Seek Legal Advice

Consulting an attorney who specializes in defamation or employment law can help you build a case and prove damages.

If you are unsure about possible next-steps, you can also reach out to an HR expert through Rancho Mesa’s RM365 HRAdvantage™ portal.

Consult Your Insurance Advisor

If you suspect your business has suffered harm as a result of a current or former posting slanderous content online, it may be covered under your general liability policy for personal and advertising injury coverage. Reach out to your insurance advisor to confirm whether or not it is covered.