Answers to the most common questions California employers ask about workers compensation insurance — from basic requirements to advanced premium reduction strategies. Updated regularly by licensed California broker Aaron Bollinger, Lic. #0D94699.
Yes — California Labor Code §3700 requires every employer to maintain workers compensation coverage if they have one or more employees. This includes full-time, part-time, and seasonal workers. There is no minimum employee count threshold — a single employee triggers the requirement.
Sole proprietors without employees are not required to carry coverage for themselves but may do so voluntarily. Corporate officers and LLC members who own shares in the business may be eligible to exclude themselves from coverage (reducing premium), but the business still needs a policy if there are any W-2 employees.
Violation of §3700 is a misdemeanor punishable by up to $10,000 or one year in jail. The state can also issue a stop-work order, which halts all business operations until coverage is obtained. The DIR enforces compliance through the Stop Order and Penalty Assessment Unit.
References: CA Labor Code §3700, §3706, §3710.
Workers comp provides four categories of benefits to injured workers:
Death benefits are also payable to dependents ($250,000 minimum for a single dependent). California workers comp is a no-fault system — the injured worker does not need to prove the employer was negligent to receive benefits, and the employer cannot be sued in civil court for covered injuries (workers comp is the “exclusive remedy”).
The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) is a private, non-profit corporation licensed by the California Department of Insurance. Its core function is actuarial: it collects claim data from all California carriers, analyzes loss trends by classification, and publishes advisory pure premium rates for each class code.
These rates are filed with CDI and become the base from which carriers calculate their actual premiums using their own Loss Cost Multiplier (LCM). WCIRB also calculates experience modifications for all eligible employers, maintains the classification system (the official list of class codes), administers the unit statistical reporting system, and operates the California Workers’ Compensation Uniform Statistical Reporting Plan.
Employers can contact WCIRB directly at wcirb.com to request their Unit Statistical Report or dispute a classification. WCIRB’s Appeals Committee can issue revised mods when carrier data submissions are found to contain errors.
Under California Labor Code §5405, an injured worker generally has one year from the date of injury to file a Workers’ Compensation claim (DWC-1 form). However, for cumulative trauma injuries (repetitive stress, occupational diseases), the one-year clock starts on the date the worker knew or reasonably should have known that the injury was work-related AND caused by their employment — which can be years after the actual onset.
Employers have different obligations: they must provide the DWC-1 form within one business day of learning about a work-related injury. Failure to provide the form exposes the employer to a $10,000 penalty and forfeiture of certain claim defenses.
Carriers have 90 days after receiving the claim form to accept, deny, or delay the claim. During the 90-day period, carriers are required to provide up to $10,000 in medical treatment regardless of whether the claim is ultimately accepted. This creates real exposure — employers should report injuries immediately to begin the 90-day adjudication window.
Yes, but there are rules. For an employer-initiated mid-term cancellation, you typically give notice to the carrier per the policy terms (often 30 days). The carrier will conduct a final audit of actual payroll for the period covered and issue a final audit bill or return premium.
If you’re switching carriers (not just canceling), coordinate the dates carefully — there must be no gap in coverage, as even one day uninsured exposes you to personal liability for any claims occurring in that gap.
Carriers can also cancel your policy mid-term under certain conditions: non-payment of premium (10 days’ notice), material misrepresentation on the application (30 days), or failure to comply with loss control recommendations (30 days). State Fund has additional restrictions on cancellation that limit when policies can be cancelled mid-term.
Workers compensation (Part One) of a standard WC policy provides the statutory benefits required by California law: medical, TD, PD, SJDB. There is no dollar cap on most benefits. This is the exclusive remedy for most work-related injuries.
Employer’s liability (Part Two) covers you if an employee sues you directly for a work-related injury outside the exclusive remedy provision — for example, a third-party liability suit claiming a contractor caused the injury (the “dual capacity” doctrine), an action for injury to a spouse caused by the employer’s negligence (loss of consortium), or cases involving intentional employer conduct.
Standard employer’s liability limits are $100K/$100K/$500K, but in California most accounts carry $500K/$500K/$500K or higher. Some clients purchase an Employer’s Liability umbrella to extend these limits further. If you work on projects where general contractors require additional insured status, the EL limits become especially important.
Generally, no — 1099 independent contractors are not employees and are not covered under your workers comp policy. However, California has strict rules about who qualifies as a true independent contractor, particularly after AB 5 (2019). Under AB 5’s “ABC test,” a worker is presumed to be an employee unless: (A) they are free from control by the company, (B) they perform work outside the usual course of the company’s business, AND (C) they are customarily engaged in an independently established trade.
If a worker doesn’t pass all three prongs, they may be classified as an employee by the WCIRB, DWC, or EDD — triggering premium obligation. Additionally, if your subcontractors don’t carry their own WC insurance (proven by a current certificate of insurance), your carrier may add their payroll to your policy at audit.
Best practice: always collect COIs from every subcontractor before they work on your behalf. COIs must be from an admitted CA carrier and show active workers comp coverage with non-expired dates.
The formula is: (Payroll ÷ 100) × WCIRB Pure Premium Rate × Experience Mod × Carrier LCM × (1 ± Schedule Credits).
Your payroll is the starting point — every $100 of payroll generates a certain base premium. That base is multiplied by your class code’s pure premium rate (set by WCIRB, ranging from $0.15 for clerical to $14.22 for roofing). The experience mod adjusts for your loss history (below 1.00 = credit; above = surcharge). The carrier’s Loss Cost Multiplier applies their markup over the WCIRB advisory rate. Schedule credits or debits (±25%) adjust for underwriting quality — safety programs, management experience, loss control cooperation.
State surcharges of approximately 3–4% are then added on top of the final premium. See our full cost guide for detailed worked examples across multiple industry tiers.
Include: wages, salaries, piece-rate compensation, commissions, overtime pay (at straight-time rate — the premium amount for overtime is excluded), vacation/holiday/sick pay paid as wages, employer contributions to certain deferred compensation plans, the value of lodging/meals as substitutes for wages.
Exclude: tips (in most cases), employer-paid group health insurance premiums, employer 401(k)/pension contributions (in most cases), employer FICA/Medicare contributions, severance pay above a policy period, expense reimbursements at IRS standard rates.
Note: California requires an annual audit to reconcile estimated vs. actual payroll. If actual exceeds estimated, you’ll receive an additional premium bill. Under-estimating payroll is one of the most common sources of large post-audit surprises. Request a mid-year endorsement if your payroll is tracking significantly above projections.
The LCM is the factor a carrier applies to WCIRB’s advisory pure premium rate to get their actual filed rate. A carrier with LCM 0.85 charges 15% less than the WCIRB advisory rate; LCM 1.15 charges 15% more. For the same class code, payroll, and ex-mod, the LCM difference between two carriers can be 30–40%.
LCMs are public record — filed with and approved by CDI — but they vary by carrier AND by class code within a carrier. A carrier may have an LCM of 0.88 for restaurant risks but 1.15 for roofing contractors, because their loss experience in those classes differs.
The only way to see how LCMs affect your specific policy is to get multiple quotes. An independent broker with multiple carrier appointments does this comparison automatically. A broker tied to one carrier cannot — and won’t tell you they’re charging 25% above the market rate for your class.
A retro plan is a premium arrangement where part of your premium is adjusted up or down based on your actual claims during the policy period (subject to minimum and maximum bounds). If you have few claims, you can get a significant premium return. If claims are bad, you can owe more than the standard premium.
Retro plans are appropriate for: large employers ($200K+ premium) with consistently low loss ratios; employers with strong safety programs who want to monetize their good loss control; and accounts dissatisfied with the LCM/schedule credit structure of conventional policies.
They are NOT appropriate for: small businesses, accounts with unpredictable claim history, or any employer who can’t absorb a potential debit premium. If a broker suggests a retro plan for a small account, ask why — it may be an attempt to reduce the visible upfront cost while hiding exposure.
Most voluntary market carriers have appetite guidelines based on mod thresholds. Common benchmarks:
| Mod Range | Market Access |
|---|---|
| Below 1.10 | Most carriers will quote |
| 1.10–1.25 | Selective market, may require loss control conditions |
| 1.25–1.50 | E&S or specialty programs |
| Above 1.50 | Typically assigned risk pool only |
These are general guidelines — some carriers are more lenient if the claims are old, an improvement plan is in place, or the account has other favorable characteristics. The assigned risk pool (WCIRB Plan) accepts all employers regardless of mod, but rates are typically 15–30% above voluntary market. Improving your mod is the single most effective way to expand market options and reduce premium long-term.
Yes. Having prior claims does not disqualify you from coverage — it’s a matter of degree and trend. Carriers look at: total number of claims, total incurred loss dollars, whether claims are open or closed, whether frequency is increasing or improving, and whether safety programs are in place.
A restaurant with 2 minor claims over 5 years will quote in all major markets. A restaurant with 8 claims in 2 years, several open, may only have access to specialty programs or the State Fund. An independent broker helps by framing the account narrative — explaining extraordinary events, demonstrating improvement trends, and selecting markets known for taking accounts with difficult history.
See our case studies for real examples of California employers who exited the assigned risk pool after improving their loss profile.
Workers comp policies are almost always written on an auditable basis, meaning the initial premium is an estimate based on estimated payroll. Carriers typically require a deposit (down payment) of 25–33% of the estimated annual premium, with the remainder paid in monthly or quarterly installments.
For higher-risk accounts or new businesses, carriers may require a larger deposit or even full-year prepay. At policy expiration, an audit is performed. If actual payroll exceeded estimated, you owe the difference (plus any applicable carrier LCM). If actual was lower, you receive a return premium or credit.
To avoid large audit bills: provide conservative payroll estimates at inception and request a mid-year endorsement if your payroll is tracking meaningfully higher than projected. Addressing this proactively is far less disruptive than a large audit bill 6 months after the policy expires.
Yes — several types apply:
An independent broker identifies all applicable credits and presents them to underwriters with your submission. Brokers who submit to only one carrier have no leverage to negotiate schedule credits.
A class code is a 4-digit number assigned by WCIRB that categorizes your business operations for workers comp rating purposes. Each code has an associated advisory pure premium rate (dollars per $100 of payroll) that reflects the actuarial average claim cost for that type of work. California uses approximately 500+ class codes.
Most employers have 1–3 codes covering their operations. Your premium is calculated separately for each code’s payroll × rate, then summed. An incorrect code can mean paying significantly more or less than you should — and over-classification (too high a code) is the more common error since some brokers default to the highest applicable code rather than taking the time to identify legitimate splits.
See our class code directory for a complete guide to California’s most common codes, with WCIRB advisory rates and classification rules.
Check your workers comp dec page or policy endorsements — your class code should be listed along with the payroll allocated to it and the rate applied. Compare the code description to what your employees actually do. If the description doesn’t closely match your operations, you may be incorrectly coded.
Common misclassifications: all GC employees under the field code when office staff should be separate; restaurant owners coded under the kitchen code when they spend the majority of time at a desk; delivery drivers coded as warehouse employees.
Request a classification inspection from WCIRB if you have significant doubt. An independent broker familiar with WCIRB classifications can review your codes at no charge. The WCIRB Scopes Manual is the authoritative source for code definitions — your broker should be working from that document, not guessing.
Yes — and you should, if your employees perform genuinely different duties. California allows “multiple classification” policies. Common splits: construction GC with separate codes for field workers, supervisors, and office staff; restaurant with separate codes for kitchen, front-of-house, and management; janitorial with separate codes for cleaning crew and administrative office.
The key rule: payroll must be divided based on actual duties, not convenience. You need records (timesheets, job descriptions) to support the split. If a carrier or auditor challenges the split, you’ll need documentation. A “record-keeping exception” may apply in some cases where separate records aren’t maintained — your broker can advise on when this is permissible.
Splitting payroll to the wrong code is a misrepresentation — only split when employees genuinely perform different types of work with materially different hazard profiles.
If your business operations change significantly during the policy period (e.g., you start a new line of work, hire employees in a new classification, or enter a new industry), you should notify your broker and carrier immediately. The carrier may endorse the policy to add or change class codes and adjust the estimated premium accordingly.
Failing to disclose material changes can be treated as misrepresentation at audit. At the end of the year, the audit will assign payroll to the codes reflecting actual operations — so if you didn’t disclose a new code but employed workers in it, they’ll be coded at audit regardless, and at the standard (often unfavorable) rate that applies to undisclosed operations.
Best practice: call your broker before you start any new type of work with materially different hazard exposure than what’s currently on your policy.
This is one of California’s most common classification disputes for plumbers. Code 5537 (Plumbing — not residential) applies to commercial, industrial, and institutional plumbing installations. Code 5183 (Plumbing — residential) applies to work on 1–4 family dwellings and small apartment buildings.
The distinction matters because the rates differ significantly ($10.22 vs. $7.44 per $100 as of current WCIRB advisories). If your business does both, payroll should be split based on documented time spent on each type of project.
If you do 100% commercial work but are coded 5183, you’re under-classified — which creates audit exposure. If you do 100% residential but are coded 5537, you’re over-paying by $2.78/100 in payroll. Your carrier will reclassify at audit if records show the wrong code was used. Get it right from day one by discussing your project mix with your broker before binding.
If a subcontractor has their own valid workers comp insurance and you have a certificate of insurance (COI) on file, their employees are NOT added to your policy and your premium is not affected by their work. If a subcontractor does NOT have workers comp insurance, California carriers typically add their estimated payroll to your policy at audit — at your applicable class code rate.
This is the most common source of large audit surprises for general contractors. Best practice: collect COIs from every subcontractor before they start work; maintain a COI tracking system with expiration date monitoring; add a contractual requirement for WC insurance in all subcontracts.
Certificates must be from an admitted CA carrier — COIs from non-admitted carriers may not be accepted by your auditor. Track expiration dates and require renewed certificates before policies lapse. An expired COI at audit is treated the same as no COI.
1.00 is the industry average — exactly what’s statistically expected for a business of your size and classification. Below 1.00 means you’ve had better-than-average loss experience and you receive a discount. Above 1.00 means worse-than-average and you pay a surcharge.
As a general benchmark:
| Mod Range | Assessment |
|---|---|
| 0.85 and below | Excellent — significant premium discount |
| 0.85–1.00 | Good — below-average losses |
| 1.00–1.15 | Average to slightly above |
| 1.15+ | Carrier restrictions begin |
What’s “good” depends on your industry. For office and professional services, mods below 0.90 are common among safety-conscious employers. For roofing and high-hazard construction, a 0.95 is genuinely impressive. A mod of 0.80 on a $200,000 manual premium saves you $40,000 per year vs. 1.00.
The mod reflects 3 years of experience with a 1-year lag. A single clean year reduces your mod, but the full benefit of going from bad experience to clean experience takes 4 years to fully flow through. Practically: if you had a bad year and then immediately improved, your mod will peak 2–3 years from now as that bad year fully matures and enters the calculation, then decline in years 3–5.
The fastest ways to accelerate mod improvement:
See our full ex-mod guide for the detailed WCIRB formula and step-by-step strategy.
Yes. If you believe your mod was calculated using incorrect data, you can file a dispute with WCIRB. Common grounds: a claim was assigned to the wrong policy year; a reserve value wasn’t updated after a claim was closed or settled; your payroll was reported incorrectly by your carrier; a claim that was denied still appears in the data with non-zero reserves.
The process: request your Unit Statistical Report from WCIRB, compare it against your carrier’s loss runs and your own records, identify discrepancies, submit a written dispute to WCIRB’s Actuarial and Research Division. WCIRB’s Appeals Committee reviews disputes and can issue a revised mod.
Timeline: typically 60–120 days. Your broker can assist with the dispute process — a proactive broker will pull your Unit Stat annually and flag errors before they compound. Errors that go undetected for multiple years can inflate your mod for the entire period until corrected.
Nothing — your experience mod is calculated by WCIRB and follows you. It is not assigned by your carrier. When you switch carriers, the new carrier looks up your WCIRB-calculated mod and applies it to your new policy. There is no “starting fresh” with a new carrier.
The only ways to change your mod are: time (old claims rolling off), claim closure (reducing reserve values before unit stat date), or WCIRB error corrections. Some employers mistakenly believe shopping for new coverage will “reset” their mod — it doesn’t.
On the positive side, improving your mod also follows you — a carrier can’t take credit for a mod improvement they didn’t contribute to. Your improved mod reduces premium with whatever carrier writes your coverage.
A denied claim can still appear in your Unit Statistical Report, but it should show $0 in paid and reserved losses. If a claim was properly denied and the denial was final (no WCAB appeal), the carrier should update the Unit Stat to reflect $0 incurred.
If you see a denied claim appearing with non-zero reserves, that’s a Unit Stat error that needs to be corrected — it could be artificially inflating your mod. Always confirm with your carrier that denied claims are correctly reported as $0 incurred within a reasonable time after the denial.
Litigation on a denied claim may keep reserves open until the WCAB case resolves. Even for litigated denials, reserves should reflect actual probable exposure — not worst-case assumptions. Your broker should be advocating for accurate reserves on all open claims, including those in dispute.
The Unit Statistical Report (Unit Stat or USR) is the data file your carrier submits to WCIRB annually for each of your policies. It contains: policy period, class codes, reported payroll by class, and all claims with paid amounts and reserves for each claim. This data feeds directly into your experience mod calculation.
Errors in the Unit Stat = errors in your mod. Every California employer has the right to request their own Unit Stat from WCIRB — it’s your data. Request it at wcirb.com or ask your broker to pull it.
Review it annually, ideally 2–3 months before your renewal, so there’s time to correct errors before the mod is recalculated for next year. Common errors include: incorrect payroll amounts, misassigned claims, reserves that weren’t updated after settlement, and denied claims showing non-zero incurred values. Each one of these inflates your mod — and therefore your premium.
The first 24 hours set the trajectory for the entire claim. Follow these steps in order:
California Labor Code §3600(a)(4) provides a defense against workers comp claims if the injury was caused by the employee’s intoxication. A post-incident drug test is legally permissible in California if it is part of a written, consistently enforced drug testing policy.
However, you cannot deny immediate medical treatment pending drug test results — care must come first. A positive drug test result does not automatically defeat a workers comp claim; the employer must show the intoxication was the proximate cause of the injury.
Best practice: include post-incident drug testing in your written IIPP, apply it consistently to all incidents regardless of perceived fault, use a MRO-supervised testing facility, and consult with legal counsel before denying a claim on intoxication grounds. A misapplied denial creates additional WCAB litigation exposure.
California Labor Code §4658.1 doesn’t mandate return-to-work programs but provides financial incentives: employers who offer modified duty and have it accepted receive a 15% reduction on the permanent disability award if the worker is ultimately determined to have permanent impairment. Employers who don’t offer modified duty or whose offer is declined receive a 15% increase in the PD award.
The financial incentive is significant — on a $50,000 PD award, that’s a $15,000 difference. Beyond the legal incentive, RTW reduces temporary disability costs dramatically and gets injured workers back to productive function, which research consistently shows improves recovery outcomes.
A documented RTW program also helps with schedule credits at underwriting and demonstrates to carriers that you actively manage claims — not just file them and wait. See our full claims management guide for a sample RTW program framework.
A Compromise and Release is a settlement agreement where the injured worker accepts a lump sum in exchange for closing their workers comp claim permanently — including future medical treatment. From the employer/carrier perspective, a C&R is usually favorable because it: removes open reserves from the Unit Stat (improving ex-mod), ends ongoing medical cost exposure, and provides certainty.
C&Rs are appropriate when: the injury has reached Maximum Medical Improvement (MMI), the parties can agree on the value of future medical costs, and there’s no active dispute about the claim facts. Your carrier’s defense attorney negotiates C&Rs.
Your broker should be advocating for C&R as a priority on claims that are eligible, since open claims with reserves inflate your mod. A claim sitting open for 3 years with a $30,000 reserve inflates your mod at every one of those renewals. A C&R at year 1 for $20,000 closes the reserve and improves your mod going forward.
Document everything, report early, and request an SIU referral. Fraud indicators: injury claimed on Monday after a weekend of physical activity, injury reported after disciplinary action or layoff notice, no witnesses, inconsistent descriptions, prior claim history, social media posts showing physical activity inconsistent with claimed disability.
What to do:
False claims in California are felonies punishable by up to 5 years in prison and full restitution.
It depends on the settlement type. Under a Stipulation & Award settlement (where medical treatment remains open), the worker can petition to reopen the award within 5 years of the date of injury if their condition has worsened. Under a Compromise & Release (full and final settlement), the claim is generally closed permanently — it cannot be reopened for additional benefits.
This is one reason C&R is valuable from an employer perspective: it eliminates the risk of reopening and removes the claim from your active reserve balance. However, C&Rs require Labor Code compliance and must be approved by a Workers’ Compensation Appeals Board judge.
Fraudulent C&Rs or C&Rs obtained through misrepresentation can be vacated. For large claims, always ensure your carrier’s defense attorney and a WC specialist review the settlement terms before signing.
An Owner-Controlled Insurance Program (OCIP) is a project-specific insurance program where the project owner (typically a developer or public agency on a large construction project) purchases a single policy covering all contractors and subcontractors working on that project. If you’re a subcontractor enrolled in an OCIP, your workers and work on that specific project are covered under the OCIP policy — not your standalone policy.
For premium purposes, you should remove the OCIP-covered payroll from your workers comp policy (via a wrap-up exclusion endorsement) to avoid double-paying. OCIP enrollment is typically mandatory when the project owner requires it.
Potential downside: the OCIP’s claim handling and MPN may be different from your standalone policy, and claims under the OCIP still affect your experience mod (since claims follow the employer’s unit stat, not the project owner’s). Coordinate with your broker to ensure the wrap-up exclusion is properly endorsed and that claims on OCIP projects are still reported and managed strategically.
State Fund (California State Compensation Insurance Fund, or SCIF) is a state-chartered, self-supporting workers comp insurer that must accept all California employers, regardless of claims history, industry, or mod. It was created as insurer of last resort — when private carriers decline to write an account, State Fund is available.
State Fund is not a government agency and receives no state taxpayer funding. Its rates are generally at or above voluntary market rates for accounts that qualify for private coverage. For accounts that don’t qualify (high mod, prior declines, unusual operations), State Fund is often significantly more expensive than the assigned risk pool alternative — worth comparing both before defaulting to State Fund.
State Fund operates like a private carrier in most respects: it has its own MPN, claims examiners, loss control resources, and audit procedures. It holds a large share of California’s workers comp market and is a legitimate, financially sound insurer.
An admitted carrier is licensed by the California Department of Insurance (CDI) and participates in the California Insurance Guarantee Association (CIGA) — meaning if the carrier becomes insolvent, CIGA steps in to pay outstanding claims up to certain limits. An admitted carrier’s rates and forms must be filed and approved by CDI.
A non-admitted (surplus lines) carrier is not licensed by CDI for standard business but can write unusual or high-hazard risks through a licensed surplus lines broker. Non-admitted carriers are NOT backed by CIGA, so if they become insolvent, policyholders have no guarantee fund protection.
For workers comp, admitted status matters significantly — workers comp is a statutory obligation and you need confidence the carrier will be there to pay claims. Always verify a carrier’s CDI admission status at insurance.ca.gov before binding coverage.
Waiver of subrogation (WOS) is a contractual agreement where you waive your carrier’s right to recover claim costs from a third party who may have caused the injury. For example, if your employee is injured at a client’s site due to the client’s negligence, your carrier would normally have the right to sue the client to recover claim costs. A WOS removes that right.
Many general contractors and property owners require subcontractors to provide WOS endorsements naming them as additional insureds. This is generally permissible under California workers comp policies but must be endorsed onto the policy — verbal agreements aren’t sufficient. WOS endorsements typically cost a modest additional premium.
The practical impact: your carrier cannot go after a third party for recovery, which means more claim costs stay in your loss history. This is worth factoring in when negotiating contract terms that require blanket WOS endorsements.
If you close your business, you should formally cancel your workers comp policy (with proper notice per policy terms). The carrier will conduct a final audit to determine the accurate premium for the coverage period. Any claims that occurred during the policy period remain valid and must be honored by the carrier — even after policy cancellation.
Your ex-mod history remains with WCIRB and will carry forward if you start a new business in a related industry. If you close the business but later restart operations (even under a different name), disclosing the prior history is essential. Failing to disclose prior ownership and claims experience on a new application is considered misrepresentation and can void the policy — leaving you personally exposed for any claims that occur.
A captive agent represents one insurance company exclusively. An independent broker represents multiple carriers — they can shop your account across a dozen or more markets simultaneously and present you with the most competitive option.
For workers comp specifically, the difference matters enormously: LCMs vary by carrier, appetite varies by industry and mod, and some carriers specialize in certain classes. An independent broker’s ability to market your account widely directly translates to a competitive premium. A captive agent’s ability to tell you “we found the best price” means the best price available from one company — which is structurally different from a competitive market search.
Brokers are compensated by the carrier via commission (typically 5–15% of premium) — you don’t pay a broker fee for standard commercial lines unless separately negotiated for large accounts. The commission is built into the premium regardless of whether you use a broker or go direct.
At a minimum: a competitive renewal quote marketed to multiple carriers, a dec page review for accuracy, and a phone call when something changes.
What you should demand from an excellent broker:
Red flags from a broker: never reviews your loss runs with you, only ever quotes one carrier, hasn’t called you since last renewal, didn’t notify you before a 20%+ premium increase, doesn’t know your ex-mod.
Get a competitive re-quote at minimum every 3 years; annually if: your premium is over $50K, your industry has had rate changes, your mod has improved, or you’ve added new class codes.
The competitive market changes constantly — a carrier that was expensive 3 years ago may now be the most aggressive on your class. Loyalty to a carrier is appropriate if the relationship is genuinely adding value (good claim service, loss control resources, reserve management). But loyalty without verification of pricing competitiveness is just inertia — and it’s costing you money.
See our case studies for real examples of how a 7-year carrier relationship was revealed to be 28% above market — and how a broker switch saved the account $47,000 at renewal without any change in coverage.
No. Like all independent brokers working on standard commercial lines, Bollinsure is compensated through a commission paid by the insurance carrier — typically 5–15% of premium. You do not pay us directly. Our compensation is aligned with your interest in getting the right coverage at a competitive price: we only earn commission if you’re placed with a carrier, so we have no incentive to over-insure or to write coverage that doesn’t serve your needs.
For large or complex accounts (typically $250K+ premium), a fee-based arrangement may be discussed separately — but for the vast majority of California employers, our services are at no direct cost to you.
Get started at our quote page or call 562-COVWELL. We review your class codes, pull your ex-mod, and shop your renewal across our 14 appointed carrier markets — at no cost to you.
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