New Workers’ Compensation Bill in California

The state of California is subjected to the third highest workers’ compensation rates in the entire US, trailing only Alaska and Connecticut according a survey completed this year. The rate that California businesses pay out is $2.92 per $100 of salary, which is 55 percent greater than the national median rate. In 2010, California was the fifth the last time this survey was taken, so it has been trending upward. This spurred California governor Jerry Brown and the state government to overhaul California’s $17-billion workers’ compensation insurance program. The law is expected to save businesses anywhere between $400 million to $1 billion annually. The reform also hopes to increase the benefits for injured workers. Payments to permanently incapacitated victims of job-related accidents are set to increase by nearly $740 million dollars a year. Money for the boost would come from streamlining the system and by eliminating some payments made to doctors, lawyers, claims administrators and other service providers in the $11 billion-a-year workers' compensation system. The governor called the proposal an extraordinary bill "to reform a broken system." This legislation would "avert an imminent crisis where workers suffer and rates will skyrocket," he said. "We have the chance to make the workers' compensation system better — much better — for workers and cheaper for business." Worker’s compensation is an example of a controllable expense if you are a contractor or in any business. If you have questions about what other liability coverage you need for a job or would like to check your rates, please contact a dedicated insurance agent at Wise Insurance Agency in Marin County today.

As a Contractor, what is a Waiver of Subrogation?

There is a legal term that shows up throughout legal documents regarding real estate, personal guarantees and insurance. The rights of subrogation are generally broken up into five different categories. The first is regarding people’s debts, the right of subrogation allows a person who paid off another person’s debt to seek the repayment from that person. There is another subrogation right which allows creditors of a trust to seek repayment from the beneficiaries of the trust if the trustee does not make payments. In many examples, subrogation rights are a transfer of the right to sue someone to recoup losses. The most important kind of subrogation is regarding an indemnity insurer, which allows an insurance company to seek financial recuperation from the party responsible for the insured’s payout. For example, if a building which you own burns down due to the fault of another, you could sue to recoup your losses. But, if you have insurance for that property, the insurance company will be able to pay for the damages. But that also becomes subrogated to your possible lawsuit against the party at fault. The right to seek payment from the negligent party becomes transferred to the insurance company. For subcontractors, the waiver of subrogation is an essential item included in your insurance certificates before starting work. This proves two things to the general contractor or employer. The first is that the subcontractor has some sort of insurance program. It is also in an attempt to negotiate the terms of an insurance policy held by the sub to result in the benefit of the contractor. A waiver of subrogation prevents the insurer from pursuing reimbursement from the other insurer. If a subcontractor’s worker is injured at a site, the subcontractor’s insurance will be hit with the worker’s compensation claim. In positions were subrogation has not been waived, the insurance company can pursue the contractor as a party culpable for the injury. As a contractor it is important to know the way to navigate through the pitfalls of insurance. Reach out to a skilled insurance agent at Wise Insurance in Marin County today.