How a $19,000 investment returned $65,775 and lowered an EMR by 20 points!
Insurance commissioner, Dave Jones, approved an overall rate decrease of 12.31% in loss cost rates for policies renewing 1/1/18 or later. For the 69 construction classifications on page 2, rates are down an average of 6.6% from 1/1/17 loss cost rates.
The insurance commissioner approved an average rate decrease of 7.8% to be effective 7/1/17 for all new and renewing policies after this date. Several insurers have filed lower rates as of 7/1/17, and will continue to take clients’ loss history into consideration when determining final net rates.
First Party Property losses such as stolen construction tools and equipment, should be a straight forward claim. You send in documents to support the value of your claim, and then you expect to be paid by your property insurer. Typically, the claim is paid but sometimes things get derailed. Your property insurer may dispute the value of your claim or disagree with some other issue regarding the facts of the loss or insurance coverage. It becomes an endless circle of move and counter move, similar to playing a chess game, where you are hoping for an immediate victory but knowing you are up against a powerful player (your property insurer).
A safe job is a profitable job—especially when you add up the direct and indirect costs of an accident! For example, a $25,000 sprain/lost time injury might take between $500,000 and $2,500,000 of additional company sales to pay for the cost of the injury.
California auto insurance rates are going up due to the escalating cost of claims. On average, insurers are paying out $1.14 for every $1.00 of premium they collect. Increased traffic on roadways, distracted drivers, escalating medical costs, rising repair costs, and finally, economic damages from severe auto injuries, are the reasons for these increased claim costs.
Insurance Commissioner, Dave Jones, has requested additional rate decreases for new and renewal policies starting January 1, 2017. The schedule in this article shows the requested pure premium rate changes to be effective January 1, 2017. We expect slightly lower rates to be approved in early December 2016.
Claim reserving is an art form coupled with an educated guess of the most probable outcome for any given claim. Reserves are set by insurance adjusters. For large and more complex claims, a claims manager or vice president will approve the final reserve.
As you know, workers’ compensation costs and your Experience Modification Rate (EMR) are two key components of any competitive bid. Multiple small claims (below $7,001) can, and often do, adversely affect your EMR more than one very large claim.
Accordingly, when thinking about how to reduce your premiums and EMR, one of the primary goals should be to legally keep First Aid claims off of your claims history. Here is a road map to help you succeed in reducing your premiums and EMR through the use of a first aid strategy.
Most general liability and workers’ compensation insurance policies are issued on an auditable basis. At expiration, insurers will use in-house or independent auditors to review your records, adjusting your premiums to actual exposures.
Audits are typically conducted 60-120 days following your insurance policy expiration. The auditor will make an appointment to visit your office and will provide a list of documents that they will want to review including: