Controlling Workers Compensation Costs for Employers

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Reduction in Pure Premium Advisory Rate is not a guarantee of lower premiums

Category: Articles Bill Cobb
PPAR vs insurance premiums

The recommended reduction in your Pure Premium Advisory Rate (PPAR) is not a guarantee of lower insurance premiums.

Injured Worker Discrimination Claims Are Back – Big Time!

Category: Articles Bill Cobb
injured worker

A recent decision by the WCAB puts Section 132(a) (discrimination for filing a work comp claim) squarely back on the table.

The decision is far reaching and is an indication how far afield the WCAB is willing to go to show employer discrimination against an injured worker.

Workplace Safety - You Can’t Roller Skate in a Buffalo Herd

Category: Articles Bill Cobb
better workplace safety

Workplace safety - how can we make it better? The answer is 'communication'. Employers should talk to employees – let them know their safety is paramount. Employees should talk to the employer – 'these are the unsafe conditions'. Employees should talk to one another – communicate that we're all watching out for each other.

Companion Insurance Company Goes ‘Belly Up’

Category: Articles Bill Cobb
premium rates peanuts

The Companion Insurance Company Goes 'Belly Up' – So to speak.  It's good news for Enstar and the carriers  – it's bad for employers. Every employer with Companion as a carrier in the last five years, beware.  You must be proactive to protect your premiums.

Work Comp Costs tell the story

Category: Articles Bill Cobb
workers comp costs

11% of all litigated injuries are responsible for 78% of all work comp costs...

To lower your work comp costs — focus on resolving the 11% of your problems without an attorney.

X-MOD: Don't be a Victim of X-MOD Ignorance

Category: Articles Bill Cobb


Almost every employer knows, once a year, they get something called the X-MOD (Experience Rating Modification). They also know it has an effect on their work comp premium – either good or bad. Beyond that, employers don't understand much about the X-MOD. That is too bad, because when it comes to what an employer will pay for work comp insurance, nothing has a greater impact. It could mean the difference of tens of thousands of dollars.

2015 Pure Premium Rates

Category: Articles Bill Cobb

Rates are going up again significantly. The carriers all hide behind the WCIRB when, in fact, they are the WCIRB. This will affect a lot of employers in California – there over 550,000.

Workers Compensation Owners Exemption

Category: Articles Bill Cobb
owner exemption

Owner exemption is endorsed by carriers

As a workers compensation consultant to employers, I have noticed a large number of companies, with the owner engaged in daily management activities, will exempt the owner from coverage under their workers' compensation policy.

Pure Premium Advisory Rates Approved

Category: Articles Bill Cobb

Commissioner gives employers a payroll reduction

It is official - the Insurance Commissioner has approved the WCIRB's mid-year (July 1, 2012) pure premium rate filings. However, the Commissioner did get his two cents worth in - literally. Instead of approving the WCIRB's rate request that would have set the Pure Premium Advisory Rate at an average of $2.51 per $100 of payroll, the Commissioner revised the request to an average of $2.49 per $100 of payroll – thus giving the employers in California a two cents per $100 of payroll reduction.

Workers Compensation Claims Reserving: This is a War of Inches

Category: Articles Bill Cobb
Workers Comp Claim Reserves

"This is a war of inches, and the inches we need to win are everywhere."1.

Probably nowhere is this statement more true than in the world of workers' compensation costs.

Claim Reserves drives up work comp costs

Lower Experience Ratings give employers the competitive advantage.Nothing has a greater impact on the level of premiums which an employer will pay than their Experience Modification Rating (X-MOD). A low X-MOD can give an employer a competitive advantage in the market place. Conversely, a high X-MOD can cause an employer to lose the advantage. It might even put them out of business.

California’s Proposed Pure Premium Rates July 01, 2012: It’s a Mixed Bag

Category: Articles Bill Cobb

The California Workers' Compensation Insurance Rating Bureau (WCIRB) has made a mid-year filing to change Pure Premium Rates, due to an increase in the cost of claims. It appears that CARRIERS are contributing most to this increase due to their rising cost of managing claims.

California's WCIRB has proposed a mid-year rate filing for the Pure Premium Advisory Rates. If there is no change after the Public Hearing (April 26, 2012) and the Insurance Commissioner approves them, they will become effective July 1, 2012.

This year is the first time in several years that the WCIRB has made a mid-year filing to change the Pure Premium Rates. The stated reason for the filing is the increase in costs of claims over the past few years and the estimated increases over the next few years – more on that later.


The rate filing is a mixed-bag for employers. Some employers will be pleasantly surprised to find the rates have declined – some significantly. However, other employers will not be as pleased.

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