Workers’ Compensation Tip in California

Many employers have a difficult time understanding how their work comp ex mods have been calculated. For 2010, California will use a single split point of $7,000 for each work comp claim into primary and excess components rather than the current formula for splitting claims. It is important to note that under the new formula, primary losses effect an employer’s ex mod more than excess losses making it important for employers to do what they can to hold down the first dollar costs of each claim. Amounts saved below the $7,000 threshold will help save on the ex mod and their premium for the following three (3) years.

Posted in Commercial Casualty, Commercial Insurance on December 20, 2009 by admin