California employers are facing an 8.7% increase in the advisory pure premium—the benchmark insurers use for pricing workers’ comp, effective September 1, 2025 While technical, this means businesses could see higher premiums, especially during renewals occurring after that date.
So, what’s driving this shift?
- Medical and legal costs are rising—especially for complex cases like cumulative trauma injuries that pile on cost and complexity.
- The combined loss ratio, which measures how much insurers are paying out versus collecting, is now well above 120%, signaling sustained financial pressure in the system
What this mean for your business?
Even though the 8.7% is advisory (not mandatory), insurers frequently align with it. If your policy renews after September 1, you may pay more, particularly if your industry is high-risk or has poor claim history.
A Smarter Response with 3G’s!
Here’s how partnering with 3G’s can help you navigate these rising costs:
| Challenge | 3G’s Solution |
| Increasing WC rates | We audit your premiums and guide you through safe, compliant payroll cost management. |
| Costly claims (e.g. cumulative trauma) | Our risk management strategies and safety protocols help reduce claims and modify duty exposure. |
| Compliance & classification risk | We ensure accurate classification, timely filings, and proactive OSHA/risk reviews to lower premiums. |
| Policy protection | 3G’s combines expert oversight with administrative ease—ensuring you stay compliant and protected. |
Our end-to-end HR, payroll, and risk management support means you’re not just reacting; you’re staying ahead of escalating costs.
Bottom Line
Workers’ comp costs are climbing, but smart planning, accurate claims management, and safety investments make all the difference. With 3G’s, you’re not just managing costs, you’re optimizing protection for your people and your operations.
Want help auditing your insurance impact or strengthening your risk profile?
Let’s talk. Visit 3-gs.com
