Yesterday the Insurance Commissioner approved an 8.3% increase in pure loss rates for July 1. These rates are advisory and the insurance companies are free to file rates of their own. The reason according to the Commissioner is increased medical cost.
This does not mean you will see an increase in your workers compensation cost of 8.3%. It could be less and it could be more depending on your loss experience and the type of business you are.
It does however indicate that there is pressure to increase rates which some of you have probably seen over the last two years. These rate increases have not been dramatic for most small businesses but I think it is something you should be aware of if your policy comes up after July1
I have been reading over the past few months surveys of small business and what the major issues are. One interesting thing that is creeping up in some surveys is the National debt. Do you think this a major issue and how would you rate it on a scale of 1 to 10 with 1 being the most significant?
In yesterdays email I had a typo. I indicated that medium size small businesses created 22 million new jobs. The correct number is 2.6 million. My percentages were right however with small businesses [less than 20] creating 82%,medium businesses[20 to 499] creating 10% and large companies[500 and over] creating 8%
Small Business California
2311 Taraval Street
San Francisco, CA 94116