Dispatch #33 - Workers’ Compensation Savings During COVID-19

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) will request three rule changes of the California Insurance Commissioner which could provide some relief to building contractors.
 
Per the WCIRB’s news alert, these are the proposed changes:

1. Exclude COVID-19 Claims from Experience Rating

2. Exclude Payments to Employees Who Continue to Be Paid While Not Working

3. Allow Assignment of Classification 8810 for Temporary Change in Duties

Here is what you should do:

• Whatever state(s) you operate in, monitor such actions and prepare to take the savings;

• “Document all payroll and employee work status changes to take full advantage of the relief these changes intend to provide.” This advice is from Dan Pete of Brown & Brown Insurance Services of California, who alerted me to the WCIRB decision and assisted with this bulletin;

• Ask your broker about premium refunds in at least six lines of insurance mandated by California Insurance Commissioner Ricardo Lara.

Look to your insurance team for help navigating this crisis. For instance, instead of making an idled vehicle non-op, you can temporarily remove collision coverage. A few thousand dollars in savings here and there can extend the runway.

See also Dispatch #19 and Dispatch #21 on the topic of reducing insurance premiums.

Need help with this or other financial matters faced by construction contractors? Let’s talk!

David Stern CFO makes every effort to provide useful and accurate information. This content, however, is not intended as a substitute for specific business-related financial advice. We disclaim all warranties and liabilities from its use.