When an employee gets injured on the job, in California, how does the employees' injury effect the employers workmen comp. surcharge? Say the employee requires 2 surgeries that fall under Workmens comp.. How much would these surgeries effect the employer?
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It depends upon the size of the employer i.e. total payroll. A smaller employer who pays less than $5,000 in annual premium will not be subject to an experience modification. So for the smaller employer there is no direct correlation with their losses and the rates that are charged.
For a larger employer that is subject to experience modification the effect of a single claim may or may not change their experience modification because it is a rather complicated calculation that tries to smooth out the effect of a single claim against the employers previous loss experience. So depending upon the severity of this claim and the employers record of prior losses there may or may not be a surcharge.
It's not a direct surcharge.
NCCI - the National Council on Compensation Insurance, calculates an "experience modification factor" which includes the dollar amounts of claims (subject to a cap), the FREQUENCY of claims - even really small ones - compares the "expected losses" for that premium size to the "actual losses", and then applies debits or credits via an experience modification factor.
Keep in mind, these calculations are done using the past five years of claims history.
Without knowing the total payrolls and total claims, and loss experience for the past five years - it's impossible for anyone here to guess how it could affect the rates.
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