Turning Rising Rates Into an Opportunity for Improvement
With California’s workers’ comp rates climbing, many employers feel the pressure but rising premiums don’t have to mean rising total costs.
In fact, rate changes often highlight opportunities to strengthen safety culture, claims management, and overall program performance.
In this second part of our series, we’ll explore five proactive steps California employers can take right now to control costs and protect their bottom line.
1. Build a Proactive Safety and Training Culture
Preventing injuries before they happen remains the most effective way to reduce workers’ comp costs.
A strong safety culture not only protects employees; it directly impacts your Experience Modification Factor (Ex Mod), which drives your premiums.
Quick Wins:
- Refresh and retrain employees on safety protocols quarterly.
- Track “near misses” to identify risk patterns before they become claims.
- Encourage timely reporting; early awareness helps you intervene sooner.
“Your best comp savings strategy starts long before a claim occurs,” says Kirk Aguilera.
“Every injury avoided directly improves your Ex Mod and long-term rate stability.”
2. Strengthen Onboarding and Return-to-Work Programs
Two of the biggest cost drivers in workers’ comp are first-year injuries and extended claim durations.
A structured onboarding process reduces injury risk for new hires, while a formal return-to-work (RTW) program helps injured employees recover faster and return safely — often at significantly lower overall cost.
Key Elements of an Effective RTW Program:
- A written RTW policy outlining clear criteria for modified duty.
- Defined time limits, typically a 90-day evaluation period for modified duty roles.
- Oversight to ensure HR and ADA compliance, avoiding inadvertent creation of permanent modified positions.
- Ongoing communication with employees and supervisors during recovery.
- Collaboration with your broker and claims adjuster to ensure transitional plans are compliant and aligned with company goals.
A well-documented RTW program not only reduces claim costs but demonstrates organizational consistency, a critical factor if claims become litigated.
3. Partner with a Broker Who Benchmarks and Advocates
Not all brokers approach workers’ comp the same way.
Employers benefit most from a broker who goes beyond renewal to actively benchmark claims data, identify controllable costs, and support program improvement year-round.
At The Liberty Company, we combine claims analytics, risk management, and wellness strategies to help employers reduce costs beyond the insurance policy itself.
Questions to Ask Your Broker:
- How often do we review claims and loss trends together?
- What benchmarking data is available for my industry and region?
- How can we integrate safety, wellness, and HR initiatives for better outcomes?
4. Use Data to Drive Decisions
Data-driven decision-making turns workers’ comp from a reactive expense into a controllable business function.
Regularly reviewing claims data can uncover trends, like repeat injuries, problem departments, or delays in claim reporting, that often go unnoticed.
Consider Tracking:
- Frequency and severity by department or job type.
- Lag time between injury and claim reporting.
- Cost per claim and its impact on your Ex Mod.
When employers visualize this data consistently, they can make targeted adjustments that yield measurable ROI.
5. Maintain Continuous Claims Mitigation Oversight
A consistent claims mitigation strategy ensures that every claim is tracked, communicated, and resolved efficiently.
That means:
- Partnering closely with your broker and adjuster to monitor claim progress.
- Scheduling quarterly claim reviews to evaluate performance.
- Identifying patterns of delayed reporting or recurring injury types.
Kirk explains, “Employers who actively manage claims, not just react to them, consistently see better outcomes and lower long-term costs. A true workers’ comp program is built on accountability, documentation, and collaboration.”
The Bottom Line
Employers can’t control California’s rate environment, but they can control how they prepare and respond.
By focusing on prevention, structured return-to-work programs, and strategic broker partnerships, organizations can offset rising premiums while improving safety, culture, and productivity.
When you work with a partner like The Liberty Company Insurance Brokers, you gain access to expert insights, claims benchmarking, and proactive advocacy that keep your workers’ comp program performing at its best, regardless of market conditions.
