California (2021, December 28) - Frictional costs are down in California, though the overall premium prices are still higher than other states in the country. The Workers' Compensation Insurance Rating Bureau of California recently finished its analysis of these numbers. The vice president of the organization, Tony Milano, reports that California is an outsider, especially when compared with the prices offered by other states.

To put it in perspective, it costs the insurance company or employer around 48 cents for every $1 provided to an employee after a claim. Thankfully, this number went down from the 50 cents offered in earlier analyses. In the entire nation, the price for each $1 in benefits is only 25 cents.

Milano, the vice president of the Workers' Compensation Insurance Rating Bureau of California, believes these higher costs are because the claims process takes longer in California. He also reports that there are more trauma-based and permanent disability applications. These types of claims require much more support due to their complexities.

Ultimately, when filing for permanent disability especially, employees are more likely to want to appeal the results of their claims. This need for added processing leads to higher frictional costs. The insurance companies have to adjust for any losses coming from the appeals.

Cumulative trauma-based claims also lead to the need for higher frictional costs, as aforementioned. Typically, employees will dispute the compensation they need to receive with a work injury attorney Long Beach. Again, this process takes more time from the insurance company and may lead to the accrual of financial losses.


Rawa Law Group has a dedicated team of attorneys with a combined 50 years of experience. They are experts in providing support for any workers' compensation claims that you may want to file. Remember, California has more permanent disability and trauma-centered claims than other states, meaning you may have a higher need to appeal.