www.Comp-Insure.com is a website owned and managed by Brilliant Insurance Services, a specialty insurance brokerage in Woodland Hills, CA. The site is dedicated to business owners who seek worker's compensation quotes in California. "It's all about the rates," says David Karubian, CEO of Brilliant Insurance. "We haven't had one caller ask for the highest rate...everyone is looking for price relief. What makes us different," says David, "is that we can insure any business and have access to just about every carrier with a competitive rate."
California worker's compensation rates are a "hot-button issue" and carry some of the highest rates in the nation. Moreover, the threat of rate increases continue to loom overhead and were it not for the fear of completely shutting down businesses that are already struggling, the rate increases would have manifested 2 years ago.
Several brokers in the office quote worker's compensation as well as many other niche insurance programs for certain business types. According to Bar Rosenthal, one of the lead brokers at Brilliant's worker's comp department, "Cheap worker's compensation quotes in California are quite possible, considering what people are currently paying with State Fund. Three weeks ago I saved a client $12k in premium by getting him credits for his good claims history and switching him to another carrier. He had no idea that there was that much to be saved."
What is worker's compensation? Put simply, worker's compensation covers employees, subcontractors, independent contractors and volunteers for work related injuries. Normally, the owner(s) of the business are excluded, but can be included in some cases.
How is the price calculated? Rates for worker's compensation are a pretty simple calculation. Every job description has a class code. At the inception of the policy, payroll estimates are given and the class code serves as a factor as a percentage of the payroll. At the end of the policy period, the payroll is audited; if the payroll was higher than estimated a bill is generated, if the payroll was lower than estimated, then a refund is issued. There is one other factor worthy of mention - the mod factor. In certain cases, a business that has demonstrated a claim-free work environment over a period of time can get a discounted rate. In turn, a business that has a large claim (or series of small claims) can incur a surcharge.
Why is it so expensive? There are a few reasons the rates are so high. First, there is considerable fraud and over-inflated claim expenses. Second, many businesses are not paying their audits. Third, some employers underreport their payroll altogether. Furthermore, it is important to remember that like all insurance, it is a for-profit venture, meaning that in addition to collecting enough premiums to cover claims, the insurance carriers, managing general agents and wholesalers all have to make a profit to properly administer the programs and still make a profit for the company that pleases the shareholders.
California worker's comp quotes are not hard to do, but knowing the markets and underwriting criteria can make a huge difference in the final price the business owner pays. According to Bar, "I love saving business owners money...it is my way of helping people and my contribution to helping the economy. I find that when people say 'thank you, you saved my business' it makes my job rewarding".
The fact of the matter is that California worker's compensation rate increases have already begun is some cases and there is much more to follow. The rates companies set forth are reflective of the carriers' appetite. Companies, including some new carriers, come into the marketplace and compete for particular class codes - while other companies, who have suffered claims and have large reserves may raise their rates. This is where the policyholder really depends on his agent or broker to help him. Those business owners who have their worker's compensation integrated with their payroll are trapped into whatever plan comes bundled with the plan. Likewise, business owners who have their policies with captive agents only get a choice or two between plans. Brilliant Insurance Services, as an independent agency, is able to gain access to these programs and the comparative rating service sets them apart from other agencies.
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