As I reflect back on 2020, it was such an unprecedented time in our history and also for the employers I work alongside in California. Moving into 2021, I’m getting a ton of employers asking me, “Carrie, what do you see on the horizon for this year?”
Senate Bill 1159 – Regulatory Changes
First, I want to focus on regulatory changes. Starting with Senate Bill 1159 getting passed in September, and fast forwarding to now, we have seen so many regulatory changes take place, all of which are falling on the burden of California employers. In addition to that, OSHA has attached some serious citations and penalties for non-compliance.
Cost Drivers and What You Need to Do
Second, for cost drivers for Workers’ Compensation we need to focus on frequency and severity. When we look at the modeling from the Workers’ Compensation Insurance Rating Bureau, we are seeing an uptick in both, and the reason behind that is from COVID-19 and also the unemployment rate.
The state of the market on a whole is unknown right now. We don’t know what the long term effects are from COVID-19 and our economic downturn. You as an employer can definitely control costs. It is imperative that you look at your Risk Program and your Workers’ Compensation Program with your insurance broker. Focus on proactive claims management and prevention protocols to keep claims from occurring. This will help offset any insurance rate increases we see in the future.
More Regulatory Changes Coming – Stay Informed
It’s important that you stay up to date with California regulatory changes. We anticipate more coming down the pipeline this year.
If you need any assistance with your Workers’ Compensation program or your insurance program on a whole, please contact us at CMR Risk & Insurance Services. We’d be happy to help you make the best decisions for your company.