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Workers' Comp Premium Savings for California Businesses Affected by COVID-19

 
 
Commissioner Lara issues Order resulting in workers’ compensation premium savings for California businesses affected by COVID-19
 
The CORONA Chamber working with the Save Small Business Coalition has great news to report. Our outreach through the grassroots campaign was successful!! Insurance Commissioner Ricardo Lara has heard our plea and we are grateful for his swift action regarding an Order for Workman’s Compensation Premium Savings for businesses. Our summary is below, provided by one of our insurance broker/agents:
 
  • This Order is a very good thing that will help reduce workers compensation costs for businesses that have employees and payroll that were impacted by Covid-19.
  • The Order forces insurance companies to lower payroll mid-term retroactively to March 19, 2020 instead of having to wait until their policy term ends and they go through the standard year end payroll and classification audit.
  • The Order also allows businesses that move their existing employees to different classifications can report the appropriate payroll that transitioned to the corresponding class code. For example, take an electrical contractor. Electrical rates per $100 of payroll are much much higher than the person working in the office as a receptionist. If the electrical contractor re-positions that electrician to a desk job they can report the payroll in the lower classification code for clerical.
  • This won't affect companies that report their actual payroll monthly because essentially the business is reporting lower payroll and reclassified payroll (as they go). This is where the business calculates actual payroll per classification and reports that corresponding payroll at the end of the month and pay premiums based on the actual payroll incurred for that particular month.  
  • Covid-19 claims will be excluded from future higher rates specifically due to Covid-19.
 
The CORONA Chamber encourages you to contact your insurance broker/agent to help you navigate and answer any of your questions. Click here for list of insurance brokers/agents who are Chamber members.
 
This information is brought to you by our Legislative Advocacy Action Committee, which is a Chamber Member Exclusive Benefit. Stay up-to-date on all of our Advocacy items on with our weekly Corona Chamber Business Briefing (CCBB) meetings.
 
Register now for our next CCBB meeting on Wednesday, June 24, with our special guest Brigadier General Melissa A. Coburn from March Air Reserve Base who will give us an update on the base.
 
For our July 1st CCBB meeting, our we are pleased to welcome Dr. Sam Buenrostro, the Deputy Superintendent of the Corona-Norco Unified School District. Click here to register.
 
Registration is required to join the meetings.
 
Click here for the Insurance Commissioners website
and Official Press Release
 
Corona Chamber | 951-737-3350
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