Did You See What’s New With Worker’s Comp?

If you have employees, you’ve definitely dabbled with Worker’s Comp insurance and PROBABLY know it’s not always the most fun part of being a business owner.   Well, we have a little good news to pass along.  Aside from seeing some nice changes in the Worker’s Comp rates this year, effective January 1, 2019, the California Insurance Commissioner implemented a new method for calculating experience modifications, or “X-Mod”s.

So, what is this new method?  For every claim reported, the first $250 is excluded.  This is done as a way to encourage business owners to report the “first aide” type of claims without it negatively affecting their X-Mod calculation.  Under California’s Experience Rating Plan only the total of each of your claims, up to your primary threshold, is used in the X-Mod computation.  This exclusion reduces that amount by $250.  Let's say you have a primary threshold of $5,000 and a single claim of $2,500, the amount used for the X-Mod calculation is going to be $2,250.  Like we said, a little good news! 

Worker’s Compensation insurance can be a bit daunting, but we are here to help.  Another great resource is WCIRB California, https://www.wcirb.com/ , where they offer articles and even informational videos to help guide business owners.       



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