Workman’s Compensation Conditions in California
Compensation is a form of insurance that is an
absolute necessity for employers to carry in the state of California.
In fact, employers safeguard their own investments when they offer
Workman’s Compensation packages to their employees, because there
is no way to foresee a future injury on the job. Therefore, it isn’t
something that employers can simply stop offering their employee’s
at all. However, if Insurer’s do happen to increase the costs of
this type of insurance there is bound to be an adverse ripple effect.
Still, with the losses that have been incurred by premium insurance
companies, many professional experts really can see no other way to
balance everything out other than to increase premiums.
Statistical evidence finds that just
last year alone, Insurers lost billions of dollars towards workmen’s
compensation claims in the state of California.
The facts gathered from the Workmen’s Compensation Insurance
Rating Bureau were astounding when the figures came rolling in.
While there was a vast amount of premiums paid in, these were minimal
in comparison to what was paid out. Normally everything remains on a
level playing field, with regard to how much is paid in and how much
goes out. In fact, Insurers normally acquire financial gains from
these claims, but because there were so many in 2011, they actually
lost money. For example, 10.4 billon dollars were paid to Insurers
in premiums. The amounts paid out show $7.7 billion in medical care
costs and other supportive benefits; while $5 billon went to other
expenses that needed covered as well. This led to a loss for
insurers of approximately $2.3 billion; definitely not a piddle
amount of money.
The primary view now is that these
losses are providing the fuel for insurers to increase the existing
premiums. There are even suggestions that some of these major
insurers just might form alliances with unions, specific providers of
medical services, and some attorneys to make changes to the reforms
on workmen’s comp claims which were put in place over eight years
It is believed that this will lead to
a great deal of disgruntled employers simply because any change to
the reform will create a hefty burden of cost on the employer’s
shoulders. Employers can shop around for more cost effective
Comp packages though. The fact is, in today’s
time, just any policy won’t do for many facing these various