Jeremy Hoolihan, CRIS

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.

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.

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.

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. 

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.

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. 

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.

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. 

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.

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.

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. 

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.

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.

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.

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.

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.

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.

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).

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.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Employee theft can be detrimental to any business and can come in many forms. Janitorial businesses, in particular, have an inherent risk of employee theft as employees often work alone at the client’s property with little to no supervision and access to valuables. Employee theft can start with smaller items that are easily overlooked and can quickly escalate. These types of losses are not only a financial burden, but can also tarnish the business’ reputation.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

As businesses continue moving towards fully reopening, certain California employers will be faced with reemployment or recall requirements, due to Senate Bill 93 (SB 93). SB 93 was signed into law by Governor Gavin Newsom on April 16, 2021. The law requires that covered employers offer their employees who were laid-off due to the COVID-19 pandemic, available employment based on a preference system.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

The Employment Practices Liability Insurance (EPLI) marketplace has faced a number of factors that are contributing to skyrocketing premiums and deductibles. Many insurance companies are facing the choice of whether to remain in the marketplace or exit altogether. Those willing to remain are then faced with having to consider the following changes…

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Auto liability is often one of the most substantial risks a business will have. Driver selection is one of the most important evaluations a business can do to prevent accidents. It’s been proven that drivers with a history of moving violations and accidents pose a higher risk for organizations. Best practices for reducing this risk allow only safe drivers to operate a company vehicle.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

While the effects of COVID-19 on the workers’ compensation marketplace vary among the different business sectors, the Workers’ Compensation Insurance Rating Bureau (WCIRB) has approved a filing that will increase the 2021 pure premium advisory rates by 2.6%. With impending rate increases on the horizon, it’s more important now than ever to be proactive when it comes to your company’s risk management program. Carriers are already tightening up their underwriting guidelines and limiting schedule credits. In order to earn the most competitive pricing possible, a business must differentiate itself from other businesses. Below are three strategies you can use to strengthen your risk profile during COVID-19.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

As businesses re-open across the country, it is important that we all do our part in preventing and slowing the spread of COVID-19. For many companies in construction and those in the service industry, employees often work in close proximity with others. Keeping your workforce and the public safe should be priority number one.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Telemedicine is becoming prevalent in the workplace as a more efficient way to treat non-emergency type injuries. Employers, employees, and insurance companies alike are seeing the benefits of telemedicine from a convenience and efficiency standpoint.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Most insurance agencies welcome any and all types of businesses, paying little attention to the type of business the prospect is running. These accommodating professionals will commit to quote virtually any person or business looking for insurance coverage. With this type of approach, inevitably the buyer will be working with a jack of all trades, but a master of none.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Safety awareness is one of the most important factors in reducing workplace injuries. There are approximately three million workplace injuries, every year. This amounts to roughly 8,000 injuries per day, 350 per hour, or 6 injuries per minute. Many of these injuries are preventable. Unsafe behaviors or decisions are usually the most common contributing factors. If employees are unaware of hazards or not motivated to follow safety protocol, their behavior will expose them even more.

Author, Jeremy Hoolihan, Account Executive, Rancho Mesa Insurance Services, Inc.

Working within the construction unit at Rancho Mesa for over 15 years, I have developed strong long-term business relationships with my clients. As an insurance advisor, I have an obligation to insulate clients from exposures and liabilities. Many of which may remain the same from year to year. However, it is vital that business owners meet with their insurance advisor frequently, especially prior to an insurance renewal, to avoid potential gaps in coverage. Below are a few key topics that should be reviewed on a regular basis by a company’s insurance advisor.