The document discusses California workers' compensation insurance rates. It explains that rates are calculated based on factors considered by the Workers' Compensation Insurance Ratings Bureau and then adjusted by insurance companies based on industry and company data. Recent large rate increases are due to court rulings affecting injured workers' benefits. However, the document claims insurance companies are wasteful and overcharging many businesses. It recommends having an independent audit done to find mistakes and recover overpayments from the past 7 years, which could result in savings of 10-15% of premiums paid.

1. CaliforniaW orke ’
rs
Compe nsationRate s
Are you being overcharged?

2. How are my California Workers’
Compensation Rates calculated?
• The Workers’ Compensation Insurance Ratings Bureau
(WCIRB) makes recommended rate changes based upon a
complicated formula involving multiple factors. They then give
this information to the insurance companies who adjust their
rates accordingly.
• The insurance companies use these number as a baseline for
each industry. They then take your industry rate and use
information about your company to calculate your experience
modification rate. This is the rate that will determine how much
you will pay for your premiums.

3. Why are California Workers’
Compensation Rates going up?
• Recently, in January 2009, the WCIRB raised rates by 8.9% and as of
March 2009, they have recommended a staggering 24.4% rate
increase that will be effective July 1st, 2009.
• Their reasoning for such a huge rate change was based on several
factors; the biggest one being a court ruling affecting the way injured
workers are treated. This has become a common excuse to justify
higher rates.
• I’ll let you in on a little secret, the insurance companies are making
billions of dollars off of businesses in California. The increased rate
changes only further pad the pockets of these insurance companies.
• What they don’t want you to know is how badly managed and wasteful
these companies are.

4. Why are my California Workers’
Compensation Rates so high?
• FACT: 75% of businesses overpay or have overpaid on
their workers’ compensation rates.
• FACT: Insurance companies make frequent calculation
mistakes.
• FACT: Insurance companies don’t care about your
business.

5. Warning Signs for Being Overcharged
The following are signs that your company may
have been overcharged and be entitled to a refund.
• The insurance company changed your company’s basic classification
• Your company’s experience rating went up during the policy period
• Various credits or discounts are missing from your company’s policy
• Workers’ compensation claims that included subrogation
• A rate change was implemented during your policy period
• Your final audit was conducted by mail, telephone, or email
• Your policy’s ex-mod is indicated as “contingent” or “preliminary”
• Your premium was increased mid-term
• Employees are paid a significant amount of overtime
• Previously open claims have been denied by official rulings
• Involved in an acquisition or merger
• A contractor involved in Wrap-up Construction Projects

6. How can I lower my California
Workers’ Compensation Rates?
• The insurance companies will tell you to do simple things like
put in place safety protocols and procedures and create a light
duty return to work program for injured workers.
• The fact of the matter is, this won’t do a whole lot in reducing
your premiums and will take years for you to see much benefit
from it.
• The most effective means of reducing your workers’
compensation costs is by having a specialized audit done by an
independent company.

7. How does it work?
• By reviewing your policies, we can find mistakes that were
made by the insurance companies and have it corrected from
as far back as 7 years.
How much does it cost?
• All audits are done on a contingency basis and won’t cost you
any money up front. If there is no recovery there is no fee.

8. I am already busy and don’t have time.
• The amount of time it will take to get together the necessary
paper work is minimal. There are only a few things that you
need to put together for us to start the process.
How much money will I recover?
• Typically we recover anywhere from 10-15% of your total
premium.
• Let’s say you pay $75,000 a year in premiums. 15% is 5,000,
multiply that by 7 years and that’s $35,000 of savings.

9. What are you waiting for?
Bankruptcy?
You can contact us at:
russell@workers-compensation-audit.com
http://www.workers-compensation-audit.com