In California, every employer is required by law to provide a safe and healthful workplace to his/her employees. In accordance with the California Code of Regulations, your employer needs to have an effective Injury and Illness Prevention Program (IIPP) in writing. There is a specific IIPP required for the construction industry, the Construction IIPP. What should you expect to see in an IIPP? It is a written plan that has the following elements:

The IIPP includes procedures that your employer puts into practice. Part of the employer’s responsibility is to control potential workplace hazards and correct hazardous conditions or practices as they occur or are recognized. The program includes a system for your employer to communicate with you on matters relating to occupational safety and health, including provisions designed to encourage employees to inform the employer of hazards at the worksite without fear of reprisal.

The safety communications system, one of the elements of the IIPP, should be in a form readily understandable by all affected employees. The safety communication system may include:

In addition to the above, the Construction IIPP requires that supervisors conduct "toolbox" or "tailgate" safety meetings with their crews at least every ten working days to emphasize safety. Supervisors also need to hold periodic meetings to discuss safety problems and accidents that have occurred.

Keeping Employers &Brokers in the Information Loop

Most employers recognize that professional training is a necessary and continuous part of business.

These employers also know that training has many measurable benefits such as improving productivity, quality, and communication. Training is an important component of any program to prevent industrial illnesses and injuries, provide quality care, reduce costs, and return employees to work.

Most insurance companies provide comprehensive training for physicians practicing in its Occupational Health clinics. Occupational Health physicians are required to document their competency or attend classes focusing on:

No. Workers' compensation is only for injury or illnesses that occur due to employment. State disability is for injuries or illnesses that are not work-related. These are handled by the Employment Development Department (EDD). State Disability Insurance (SDI) is automatically deducted from the employee's paycheck.

Before 1995, the rates applied to your premium were established by the Workers' Compensation Insurance Rating Bureau. As of January 1, 1995, all insurance carriers are responsible for establishing their own rates. This system of determining rates is called the competitive rating system. Under competitive rating, State Fund's pricing is based on the classifications, the size of payroll and the individual risk characteristics of each business. These base rates for each class code will be multiplied by the employer's payroll. Form 10502 "Understanding Your Quote For Insurance" is available upon request at any State Fund Office. The form will explain in more detail how insurance premium is calculated.

Yes. Your ability to control workplace accidents can affect your insurance premium. When you apply for insurance with State Fund, we will perform a risk evaluation of your operations. The risk evaluation will ensure that each business with its diverse operations receives a fair price representation. The results of the evaluation will be included into your premium calculation. If your safety record is better than the average for your industry, your premium could be decreased by a percentage. A worse than average loss history could result in increased premium. This is called experience modification, Your premium must total at least $14,100 (over three years) for you to be eligible for experience modification. Employers with poor loss record or unsafe working conditions may also pay more than basic rates by having a surcharged applied to their premium.

In 1991, the California State Legislature clearly defined workers' compensation fraud and imposed penalties on those involved in fraudulent activities. This legislation, combined with insurance industry programs, resulted in a dramatic decrease in fraud.

State Fund began fighting fraud well before the legislature passed its landmark legislation. State Fund created a Special Investigation Unit and won California's first major premium fraud case. The decision in that case resulted in a $3.7 million judgment and jail terms for the perpetrators. That case is now recognized as a significant victory for honest employers and stands as a milestone in State Fund's continuing battle against all types of workers' compensation fraud: Premium Fraud, Claimant Fraud and Medical & Legal Provider Fraud. At public hearings held by the Department of Insurance, State Fund was singled out and lauded for its ongoing efforts to combat fraud.

State Fund's Fraud Investigation Program works in concert with district attorneys throughout the state to investigate and prosecute fraudulent activities. Fraud referrals come from many different sources. They may come from a call placed to State Fund's 'Hot Line' phone service (1-888-786-7372) or to a local State Fund office. A front-line claims adjuster may notice something unusual about a claim which warrants further investigation. Computer programs may draw attention to repeated, unusual or suspicious billings from vendors. Once fraud is suspected, State Fund's internal resources come into play. These resources include a network of designated liaisons in each State Fund office, claims personnel, fiscal and data processing employees, underwriting specialists and clerical support staffs. State Fund also produces video programs to help combat fraud. These videotape productions have proven so successful that other states have asked permission to use them. State Fund is a member of California's Fraud Assessment Commission and participates in other anti-fraud committees.

State Fund is California's only workers' compensation carrier to maintain a fully staffed civil litigation unit devoted entirely to the recovery of damages involved in fraud-related activities.

Service, accessibility, and convenience sum up the California State Fund Broker/Agent Program. Employers can now access State Fund either through their brokers or directly from one of our State Fund offices. More than 5,000 brokerage firms are currently certified with State Fund. This shift toward working through broker-agents in addition to staff creates the highest level of convenience for our customers.

Multi-faceted and value-added service

At State Fund, it's all about service. Broker-agents will find their contact with us is made easier because:

assigned underwriting representatives will assist you with everything from getting a quote to arranging support for your larger accounts

timely quotes are available from either the State Fund office nearest you or the State Fund nearest your client

we are a "direct bill" carrier and handle all billing and premium collection so you can focus on other areas of your business

our expert, professional safety and industrial hygiene staff-the largest and best trained in California-works locally with accounts providing safety surveys, loss analysis reports, Cal-OSHA counseling, and safety materials all at no extra cost.

State Fund offers a competitive commission schedule with commissions on paid premium on all new and renewal broker business. For more information about our commission plan, please contact the State Fund office nearest you.

To be certified by State Fund you must attend a training class coordinated with Insurance Skills Center and IBAWest. You do not need to be a member of IBAWest in order to become certified with State Fund. For more information and a class schedule or contact State Fund's Broker-Agent program at 1-866-565-3129.

State Compensation Insurance Fund believes that a safe workplace can increase worker productivity and lower the cost of business operation. Our experience shows that frequency and severity of workplace accidents and illnesses can be reduced, or even eliminated, through informed planning and education. State Fund has provided the Loss Control Newsletters as a quick, informative and easy way for you to keep up to date on Safety issues and tips on safety.

A temporary, short term change in job duties that allows an injured employee to return to work at a job that is less physically or mentally demanding than his or her regular assignment. This includes both transitional modified work and transitional alternative work.

A change in the work environment, including job restructuring, equipment/tool modification or selection, and/or workstation modifications.

A change in shift or reassignment to another job.

We know that having employees off the job can create gaps in your work flow. That's why our State Fund claims staff are focused on appropriate care and timely return to work.

State Fund's workers' compensation insurance plan works in conjunction with your existing return to work program, and if you haven't already had an opportunity to establish a program, our Return To Work Consultants can help you set up one as part of our service.

Whether you know it or not, your actions have a profound effect on how quickly your employees return to productivity-- and on your overall workers' compensation costs. With your help and encouragement, employees can make smooth, expedient transitions from injury or illness to productivity. We describe this process as promoting "early returns".

An early return to work program takes less time and effort than you may think. In general, a program entails:

When your employee has a work-related injury, it’s reassuring to know that you can depend on your Insurance.

Insurances in general have a team of experienced specialists whose mission is:

to provide quality service . . .

24-Hour Claims Reporting Center—designed to reduce the time and effort of reporting an injury and provide appropriate medical treatment as quickly as possible.

Claims Adjusters receive comprehensive training and are informed on medical, legal, and legislative developments.

Claims Managers have an average of 18 years experience in claims.

In-house Attorneys are available to represent your interests at no extra cost.

Vocational Rehabilitation Counselors are on staff to speed the process of returning the employee to a self-supporting status.

Physician/Registered Nurse Consulting Program—medical and nursing consultants are available to review treatment on certain claims for medical necessity.

Fraud Investigation Program—we have staff investigators working with each location to submit cases to the District Attorneys for prosecution.

. . . at the lowest possible cost.

Medical cost containment program has reduced medical bills for a savings of millions. This helps lower our policyholders’ experience modification ratings. Swift, equitable claims decisions mean lower claims costs.

First, imagine having direct access to medical teams that are experienced in treating occupational injuries in addition to having extensive knowledge of the workers' compensation claims process. Then, add the leading provider of workers' compensation. Finally, include up to a 10% discount on your workers' compensation premium. The coordinated care programs, available state/nation wide to all eligible policyholders, emphasize controlling claims costs while providing your employees with superior medical care. By teaming pre-approved health care professionals who specialize in industrial injuries with State Fund's experienced claims adjusters, you are assured of expert medical care, medical case management and a hassle-free claims process.

These programs were developed in response to what employers tell us they value in a workers' compensation program. The team of medical providers and insurance adjusters form one cohesive unit that's committed to providing organized, effective workers' compensation claims assistance. Each member of the team helps ensure that costs are controlled and medical care is appropriate.

State Fund's Merit Rating Plan is offered to eligible employers with $30,000 or more in base premium, prior to application of any discounts. This plan rewards an employer's favorable individual risk characteristics such as return to work programs and management endorsed safety programs, with a maximum discount of up to 25%.

Merit Rating provides a mechanism for recognizing individual risk characteristics of an employer that are not otherwise reflected in the base rate. The rating is established through the application of credits or debits within established ranges based on an analysis of the employer's operations

The premium discount recognizes that the higher premium accounts have lower expenses associated with servicing. State Fund's premium discount is applied by using a schedule of premium layers and percentages. Not all accounts will qualify for a premium discount; however, discounts of up to 17.5% are possible.

This section contains an overview of the rating and discount plans available with State Fund. State Fund's pricing is based on premium size discounts and several other discount plans that can further reduce our insureds' premium. Larger accounts will find options available which allow our product to be custom-tailored to our insureds' business needs. Some of our plans are designed to give our insureds cash management advantages. All plans are designed to provide the best product at the most competitive price.

Premium size is the basis for determining the appropriate rating plan. Base rates for all accounts will begin with our filed rates for each class code, and this figure is multiplied by the employer's payroll. From there, many factors will be looked at to apply the appropriate rating plan.

State Fund is now offering a wide variety of special discounts that could result in savings on your worker's compensation premium. Contact your State Fund representative or your broker today to find out how much you can save!