Workers’ compensation lawyers in Los Angeles are a great resource when you have questions about your insurance rates. The pandemic has resulted in adding a new kind of employee to the payroll – remote worker. At the same time, recovering the loss of money paid out due to claims stemming from COVID-19 has hit the industry when it was already down. If you’re an employer and you need information regarding the possible changes to your worker’s comp insurance rates, Belal Hamideh Law is here to help. Here’s what you should know.
Current Changes
California workers comp rates are already a bit higher than the national average, which is approximately $1 per $100 of payroll. California’s rates average about $1.56 per $100 of payroll. Several factors play a role in the cost. That includes the specific laws in the state and the medical fee schedule. If medical costs are higher, worker’s comp insurance rates are usually higher as well. Businesses that operate higher-risk jobs also tend to pay more in workers comp insurance.
Possible Rate Changes
The California Insurance Commissioner is proposing an almost 3 percent increase in workers comp fees. That comes out to about 5￠per $100 of payroll. It might not sound like a lot, but it adds up quickly, especially for large businesses with a high payroll. Other experts in the industry are suggesting lowering the rates. In either case, there are people on both sides of the issue. At the same time, COVID-19 is just one of the factors that are playing a role in the possible rate changes.
Why Change the Rate?
One reason to change insurance rates is to keep companies competitive. This is how they make their money so allowing companies to offer competitive prices builds the industry and helps keep it going. Another factor is the rising cost of medical care. As this goes up, worker’s comp rates may need to go up as well to compensate both the insurance companies and the businesses that purchase the policy. COVID-19 and the shift in the way people work are also playing a role in recommended rate changes.
Bill 335
On top of possible rate changes, a new bill, Bill 335, recently passed in California that changes workers comp for both employers and employees. For employers, it reduces the time that claims can be investigated from 90 days to 45 days. It also raises the benefits that an injured worker can receive from $10,000 to $17,000. Not only can this change the rates a business pays for insurance, but it might also result in more denials due to the shortened time frame. That’s also something that can impact insurance rates.
How Workers Compensation Lawyers in Los Angeles Can Help
Workers comp laws can be confusing and it can be frustrating to try and figure out the best plan of action regarding your worker’s comp insurance. Hiring a lawyer means having someone on your side who can assist with paperwork, answer questions and help you find the latest insurance information. Call Belal Hamideh Law today and we can help you.
