Ep. 647 2026 Brings Another Increase in California Tree Care Work Comp Rates
Rancho Mesa’s Alyssa Burley sits down with Rory Anderson, Partner with the Tree Care Group, to talk about the increase in workers’ compensation pure premium rate for tree care businesses in California.
Show Notes: Subscribe to Rancho Mesa's Newsletter
Host: Alyssa Burley
Guest: Rory Anderson
Producer/Editor: Megan Lockhart
Music: "Home" by JHS Pedals, “Breaking News Intro” by nem0production
© Copyright 2026. Rancho Mesa Insurance Services, Inc. All rights reserved.
Transcript
Alyssa Burley: You’re listening to Rancho Mesa’s StudioOne™ podcast, where each week we break down complex insurance and safety topics to help your business thrive. I’m your host, Alyssa Burley, and I’m joined by Rory Anderson, Partner in Rancho Mesa’s Landscape and Tree Care Group. Today, we’re going to talk about the increase in workers’ compensation pure premium rate for tree care businesses in California. Rory, welcome to the show.
Rory Anderson: Thanks for having me, Alyssa. Glad to be here
AB: Of course so for listeners who may not be familiar with workers' compensation pricing, will you explain what a pure premium rate is and why California tree care companies should pay attention to changes in the WCIRB's annual rate filings?
RA: Yes. The WCIRB, which is the Workers' Comp Insurance Rating Bureau of California, looks at workers' compensation claims and payroll data from carriers across California and estimates the expected claim costs for each type of business. And that estimate is the peer premium rate. So it's an advisory benchmark, not exactly the net rate that the carrier, you know, is going to charge, but often carriers use it when they're developing their own rates alongside their expenses and their underwriting results on top of the peer premium rate. So when the benchmark for tree care companies goes up, it tells us that claims are getting more costly and can put upward pressure on what tree care companies ultimately pay.
AB: The pure premium rate for the 0106 Tree Pruning classification increased by more than 10% for 2026. What factors are driving that increase, and does it mean every tree care company should expect its workers' compensation premiums to rise by the same amount?
RA: So the Bureau's estimate reflects the expected cost of claims in that class based on industry loss and payroll data. And it's a sign that the workers' comp losses remain costly for tree care, but it isn't a blanket 10% increase on every single policy. Each carrier sets its own rate, and then each company's premium depends on many different things like its payroll, its loss history, experience modification, safety practices, and how the carrier just views the overall. count. So two companies in the same class can have very different outcomes.
AB: Yeah that makes sense, so what practical steps can tree care companies take today to help control workers' compensation costs and minimize the impact of rising rates, even in a more challenging insurance market?
RA: Second, stay close to your claims. So that just means reviewing them regularly, communicating with the adjuster. If you have a workers' comp claim advocate, that's really important, and then have an aggressive return to work program so an injured employee can come back to appropriate duties when medically cleared to do so that can help really sort of limit the overall claim costs and protect your experience mod and then lastly, I would be focusing on building a strong relationship with a carrier partner that understands and has an appetite for your business for the tree care industry and they handle claims well.
You really can't control what the bureau is doing with pure premium, but you really can sort of influence your risk profile and the claim experience that the carriers see when they're pricing for the renewal.
AB: Yeah. So control what you can and accept what you can't.
RA: That’s right yeah.
AB: Rory, if listeners have questions about their workers compensation pricing, what it’s going to cost them, what’s the best way to get in touch with you?
RA: Call me at (619) 486-6437 or you can shoot me an email at randerson@ranchomesa.com
AB: Alright so rory, thanks for joining me in StudioOne™.
RA: Thanks for having me.
AB: Thank you for tuning in to our latest episode produced by StudioOne™. If you enjoyed what you heard, please share this episode and subscribe. For more insights like this, visit us at RanchoMesa.com and subscribe to our weekly newsletter.