How your business can survive the killer costs of workers' compensation
Over the past year, California businesspeople have grown increasingly infuriated over a variety of perceived economic problems. High taxes. Politicians' indifference to corporate issues. Deteriorating physical infrastructure. Ultimately, this anger became so strong that it partially led to the termination of Gov. Gray Davis and the installation of Governator Arnold Schwarzenegger.
But despite companies' myriad complaints about the Golden State, when Scott Hauge, president of CAL Insurance & Associates Inc., a San Francisco insurance firm targeting the small-business market, did a survey of roughly 1,200 Californian entrepreneurs earlier this year, he found their biggest problem wasn't taxes or roads-it was the skyrocketing cost of workers' compensation. Workers' comp premiums in California rose by more than 100 percent in the past two years alone, and insurers paid out nearly $20 billion in comp claims in California last year. "It's the number-one issue [for small companies]," Hauge says.
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