Over the past three years, the majority of California employers have seen their Workers’ Compensation rates drop over forty percent. In addition to this, there will be a continued drop in rates this summer.

To add to this good news, Insurance Commissioner Steven Poizner is proposing a reform package to help further lower rates. Poizner’s reform package includes an improved method of forecasting loss costs, speedier delivery of benefits to injured workers, and improved methods of combating fraud.

While we can all be happy with this news, business owners should remember that since 1995 California has been witness to a rollercoaster ride of Workers‘ Comp rates. I know that for many of our customers there are questions about when the dropping rates will reverse their momentum.

There are more important matters to attend to, than looking at our crystal ball and predicting the next rate increase.  I suggest that all employers take advantage of the current low rates and, more importantly, that they implement long-term methods of lowering rates.  Taking advantage of everything available to achieve the lowest possible rates all the time will help business owners stay competitive and continue to save money, no matter how rates fluctuate.

Internal adjustments are the simplest way to lower rates. Below are some ideas to incorporate into your long-term strategy to get the lowest rates.

1. Being aware of workplace safety standards and ensuring that all standards and codes are met will have a huge factor on your claim experience.  Ensuring that all employees are aware of safety and emergency procedures will provide the safest of environments.  In addition, timely inspections and proper certification will benefit you immensely when it comes time to reducing frequency and severity of claims.

2. Over recent years, fraud has become a large reason for rising rates.  Properly reporting incidents, along with good investigation practices will help to minimize the cost of claims and give the insurance companies ammunition to help fight fraudulent claims.

3. Claims monitoring helps to ensure a claim is handled economically. This starts when the claim is first submitted to the insurance company.

4. Establishing a relationship with an occupational medical facility helps to keep claims cost down. This facility should know your business, bill you for first-aid claims, and understand how you can accommodate returning employees to the work place either at full or modified duty.

5. Auditing how the premium is calculated will ensure paying the lowest amount possible. This requires annual audits of the Experience Modification, proper classification of employees, and calculating payroll to take advantage of the rules related to calculating premiums.

Implementing these processes can seem daunting for many businesses. Riviera Insurance Services can help you and provide the resources to help you. Let us help you keep the prices down and the good times rolling!