California’s State Compensation Insurance Fund is calling for a 9 percent average decrease in collectible premium its latest filing of workers’ compensation rates for 2007. The new rate will affect new and renewal workers’ comp policies with an effective date on or after Jan. 1, 2007.
State Fund said the filing is its seventh consecutive rate reduction. Rates have fallen since 2003, reflecting a cumulative savings of 49 percent below pre-2004 rate levels. An average 8 percent reduction in manual rates is contributing to the 9 percent reduction in collectible premium.
According to State Fund, small employers with annual premiums between $1,000 and $75,000 with superior safety records will continue to receive a 10 percent workplace safety credit. “As rates decline and premiums decrease, even more employers become eligible for the credit. State Fund is pleased to be able to expand the ability of small employers to qualify for additional savings through the workplace safety credit,” said State Fund President J.C. Tudor.
“State Fund is very please to continue passing on the significant savings that are directly attributable to the implementation of the Governor’s and the Legislature’s landmark workers’ compensation reform legislation of 2003 and 2004,” Tudor added. “Small and large businesses alike have benefited from these reform measures. Workers’ compensation costs are coming under control, California is enjoying a robust competitive workers’ compensation market and State Fund’s market share has decreased significantly since 2004.”
State Fund Board Chair Jeanne Cain said, “The 9 percent rate decrease represents significant additional savings for all employers.”
For more information, visit www.scif.com.
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