Homeowner Associations » Workers' Compensation

Workers' Compensation Facts

Workers' Compensation was the first form of social insurance in the United States predating both unemployment & Social Security. When the United States changed from an agricultural to an industrial economy the # of workers killed or disabled in job-related accidents increased greatly. Workers compensation insurance legislation came to be viewed as a solution to the growing number of work-related accidents.

Did you know…

  • Since 2000, at least 18 private insurance companies have stopped writing new workers’ compensation policies in California, and the State Compensation Insurance Fund(SCIF) has picked up much of the slack. It wrote $1.8 billion in premiums in 2000, $3.6 billion in 2001, and $5.5 billion in 2002.

  • California has the highest premium rates in the nation while benefits for injured workers remain in the lower third of all states.

  • In 2002-2003, the California Department of Insurance (CDI) received 3,544 suspected workers’ compensation fraud referrals. This number has remained steady for the past three fiscal years.

  • More than 70 percent of all workers’ compensation cases were applicant fraud, where a claimant files a false claim for an injury supposedly sustained in the workplace

  • The California Workers’ Compensation Institute reports that in 1999 (most current stats) more than 1.6 million workers’ compensation claims were filed.

  • While the number of workers’ compensation claims are down, the cost of claims has dramatically increased due to increasing medical and legal costs.


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