Author, Drew Garcia, Vice President, Landscape Group, Rancho Mesa Insurance Services, Inc.
The Workers’ Compensation Insurance Rating Bureau (WCIRB) has proposed a 2% decrease (from $2.42 to $2.37) in the expected loss rate for the landscape class code 0042.
The proposed $2.37 would impact Experience Modifications (ExMod) for all workers’ compensation policies that take effect on or after September 1, 2022.
The expected loss rate is used to calculate each company’s individual ExMod within the industry. A decrease in the rate would generate lower expected losses and lower primary thresholds. So, the lower number puts pressure on the ExMod to increase. Whereas, an increase in the expected loss rate would help provide some potential ExMod relief.
The proposed decrease would impact the lowest possible ExMod for landscape companies by increasing it about 5% or 2 to 3 ExMod points.
So, landscapers need to implement effective safety programs to ensure losses don’t exceed the new lower expected loss rate for the industry.
To help landscape businesses manage their individual ExMod, Rancho Mesa introduced the KPI Dashboard in January 2021 to provide insights that help organization leaders stay informed and prepare for future changes like these.
If you’re not a Rancho Mesa client, and are a landscape business in California, we would welcome the opportunity to forecast your ExMod to help you better prepare. Contact me to request your customized KPI Dashboard.
