CMs Hit Hard by Workers' Comp Rates in CA

LOS ANGELESWorkers' compensation insurance rates are drastically rising in California, hitting dietary supplement contract manufacturers especially hard. Though rates have been steadily dropping for the past seven years, California insurance agencies pushed for another round of rate increases. Greg Doherty, dietary supplement practice leader at Poms & Associates Insurance Brokers Inc., said insurance companies are paying much higher medical and other costs to treat injured employees, causing higher premiums for businesses.

Doherty noted supplement contract manufacturers pay high rates compared to raw materials suppliers or retailers. In the past 60 days two of my contract manufacturing clients have seen premium increase of 50 percent over last year," he said. "This story is just beginning."

Learn more about the unique challenges contract manufacturers faceand how they overcome themin the INSIDER slide show, "Contract Manufacturing Best Practices."