Understanding the New OSHF Surcharge

Policyholders will see a new government-mandated Occupational Safety and Health Fund (OSHF) surcharge on their premium bills beginning January 1, 2009. The surcharge is designed to fund safety and health agencies to implement and enforce safe working conditions for California workers. By law, all California insurance carriers, including State Fund, must collect the surcharge from policyholders.

The surcharge is a result of Assembly Bill 1389, amending Labor Code §62.5, signed into law in 2008. Among other things, this bill added the new OSHF surcharge effective on policies incepting on or after January 1, 2009. The Department of Industrial Relations has set the surcharge factor at .1185% of assessable premium, which is premium after all rating adjustments such as experience rating, schedule rating have been applied.

The small Occupational Safety and Health Fund (OSHF) surcharge will join the five existing mandated surcharges you currently see on your bill:

• Workers’ Compensation Administration Revolving Fund (WCA)
• Workers’ Compensation Fraud Account (WCFA)
• Uninsured Employers Benefits Trust Fund (UEBTF)
• Subsequent Injuries Benefits Trust Fund (SIBTF) and
• California Insurance Guarantee Association (CIGA)

Information about these surcharges will be in your annual rating endorsement. Click here to see surcharge explanations.