The premium State Fund policyholders pay for workers’ compensation insurance is based primarily on their payroll in job-specific classifications as well as their experience modification (ex-mod), if applicable. This amount may be modified by premium-size discounts and several other State Fund discount plans. Larger accounts may have additional options available that allow our product to be custom-tailored to business needs.
This is a brief overview of the rating and discount plans available from State Fund:
Base rates for all accounts originate with our filed rates for each classification code. The rate for each class code is multiplied by the employer’s payroll for each class code. From there, State Fund’s rating system evaluates several factors to apply the appropriate rating plan and determine the final premium.
State Fund offers employers a premium discount above a certain premium threshold, since higher premium accounts have relatively lower expenses associated with servicing.
State Fund's premium discount is applied through a schedule of premium layers and percentages. Although not all accounts will qualify for a premium discount, employers can receive a discount of up to 11.3 percent.
State Fund’s Schedule Rating Plan provides a mechanism for recognizing an employer’s individual risk characteristics that are not otherwise reflected in the base rate. Schedule Rating may reward an employer’s favorable individual risk characteristics, such as return to work programs and management-endorsed safety programs. The Schedule Rating Plan applies only to accounts with $25,000 or more in base premium that meet specific underwriting standards. The Schedule Rating Plan modifier for certain eligible accounts is subject to a maximum credit of 40 percent and a maximum debit of 40 percent.
State Fund offers an Alternative Dispute Resolution (ADR) program that provides benefits for employers who have signed certain types of collective bargaining agreements.
Note: State Compensation Insurance Fund is not a branch of the State of California.