Par for the course in California’s volatile Workers’ Compensation market, another insurance company is exiting the state. Citing intense competition and escalating medical costs, Employers Direct will cease writing new business in California on August 1, 2009.

Read the Press Release here.

Unfortunately, this is nothing new. California has faced a turbulent workers’ compensation market over the past decade, with insurance rates swinging wildly from huge increases in the late 1990′s, to plummeting rates in the mid-2000′s, to rising rates again as we approach 2010. Several large insurance companies have also shut their doors over that same time period, most notably Reliance Insurance Company and  Golden Eagle Insurance Company.

What can you do to protect your business?

You can’t control the workers’ compensation market, but you can control your own company. If you take safety seriously, adhere to the required OSHA guidelines, and diligently manage workers’ compensation claims, you will be in a strong position to negotiate good rates upon renewal. If you ever find yourself in the unfortunate position of shopping for a new carrier, a solid safety track record will make it easy to find a new insurance company willing to take your business.

In our next post, we’ll look at some concrete steps you can take to keep your workplace safe, and ultimately reduce your workers’ compensation costs.