As a policyholder, you may recognize that there are some California Workers’ Compensation Premium Assessment Rate changes. In 2022, policyholders can expect to see a significant increase in their California Premium Assessment rates, which is independent of their Workers’ Comp rates.
The CA Workers’ Comp Premium Assessment has increased to cover California’s Division of Workers’ Compensation’s budget and provide a source of stable funding for related administration and programs. Surcharge programs are required by law for all California Insurance Carriers to participate in. As an insured, you must be aware of these changes. Here is what you need to know:
- The total percentage for all the premium assessments in 2021 was 3.959%. Effective 1/1/22 the new rates will total 5.9318%.
- On accounts that rates remain “flat”, the insured will still see a 2% increase due to the large increase in the California premium assessment rates.
- California premium assessments are applied to all Workers’ Comp policies issued in California, regardless of loss history and independent of workers’ comp rates which continue to remain at an all-time low.
The new rates are detailed below:
| Surcharge/Assessment |
1/1/2022 |
1/1/2021 |
| WCARF – Workers’ Compensation Administration Revolving Fund |
1.93% |
2.26% |
| WCFA – Workers’ Compensation Fraud Assessment |
0.48% |
0.47% |
| UEBTF – Uninsured Employers Benefits Trust Fund |
0.15% |
0.08% |
| SIBTF – Subsequent Injuries Benefits Trust Fund |
1.74% |
0.66% |
| OSHF – Occupational Safety and Health Fund |
0.92% |
0.26% |
| LECF – Labor Enforcement and Compliance Fund |
0.71% |
0.23% |
| CIGA – California Insurance Guarantee Association |
0.00% |
0.00% |
| Total of all assessments |
5.93% |
3.96% |
To learn about each of these funds and associations, click here.
For additional questions regarding the California Workers’ Comp premium assessment rates on your Workers’ Comp policy, reach out to your Broker directly or contact the California Department of Industrial Relations - Division of Workers’ Compensation at 1-844-522-6734.
TSIB’s Risk Consultants are currently servicing the following locations:
East Coast: New York City, NY; Bergen County, NJ; Fairfield County, CT; Philadelphia, PA
Texas: Austin, San Antonio, Houston, Dallas
California: Orange County, Los Angeles County, Riverside County, San Bernardino County, San Diego County
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