The Sonoma Index-Tribune reports that California counties, including Sonoma, are struggling under skyrocketing insurance costs. It goes on to report that “Sonoma County has seen its overall liability insurance costs go up more than 500% in the past decade, according to data obtained by The Press Democrat. The county’s spending on that insurance has gone from under $3.8 million for fiscal year 2014-2015 to almost $23.8 million for 2024-2025.”

The Press Democrat primarily focuses on the surge in liability insurance costs for California counties (such as Sonoma County’s 500% increase over the past decade, driven largely by law enforcement-related claims and a shrinking insurance market), it briefly mentions workers’ compensation as one of the core insurance types local governments manage alongside property and liability coverage.

A broader search for recent reports, statements from county officials, and industry analyses indicated that California’s workers’ compensation system is notoriously one of the most expensive in the U.S., and counties-as major public employers with high-risk roles like law enforcement, firefighting, and public works – face significant burdens. The following is a breakdown of the main issues based on recent reports (as of September 2025):

California ranks as the 3rd most expensive state for workers’ compensation insurance, with average rates about 178% higher than the national median. This is due to factors like high medical costs, a litigious environment, and the state’s unique regulatory system (overseen by the Workers’ Compensation Insurance Rating Bureau of California, or WCIRB, rather than the national NCCI standard).

In 2025, the California Department of Insurance approved an 8.7% increase in the average advisory pure premium rate – the first meaningful rise in over a decade. Insurance Commissioner Ricardo Lara alerted state leaders in a letter that these “growing costs” could impact businesses and public entities like counties, signaling a shift in market conditions that might lead to further hikes.

Ben Adler, spokesperson for the California State Association of Counties (CSAC), has echoed sentiments from the Sonoma article by noting that insurance challenges (including workers’ comp) are forcing cuts to services residents rely on, such as law enforcement and wildfire protection. In Sonoma, where the Sheriff’s Office already dominates liability spending ($13.1 million in 2024-2025), workers’ comp adds to the fiscal strain for high-risk deputies and correctional staff.

Napa County officials have reported general insurance costs (including workers’ comp) doubling in five years, with expectations of 20% annual rises. This mirrors Sonoma’s experience and has prompted “tough conversations” about service reductions, as noted by Napa CEO Ryan Alsop.

Public sector roles like policing, firefighting, and jail operations involve inherent risks, leading to frequent claims for injuries (e.g., back strains, assaults, or repetitive stress). Counties complain that these drive up experience modification factors (which adjust premiums based on claim history), making coverage more expensive.

Fraud is a major grievance. The Sonoma County District Attorney’s Office received a $339,173 grant in 2023-2024 from the California Department of Insurance to investigate workers’ comp fraud, including claimant exaggeration, employer premium evasion, and medical provider schemes. Officials like DA Carla Rodriguez emphasize that fraud inflates system-wide costs, affecting honest employers like counties. Statewide, fraud investigations highlight how it increases premiums for everyone, with counties bearing the brunt as self-insured or pooled entities.

Similar to workers’ comp costs liability insurance costs are fueled by increasing jury awards, lengthy claim resolutions (averaging 16 months), and uncapped damages in California. Counties complain about “nuclear verdicts” and extended filing deadlines (e.g., from recent laws like those extending child abuse claim windows, though this hits schools harder).

Medical treatment costs in California are among the highest nationally, with evidence-based care requirements adding to expenses. The state’s no-fault system ensures benefits for most claims, but counties report disputes over benefit delivery, leading to audits and appeals via the Division of Workers’ Compensation (DWC).

Shared risk pools like PRISM (used by Sonoma and 54 other counties) spread costs but also mean one county’s high claims can raise premiums for all, exacerbating complaints during waves of litigation.

Insurers are pulling back from California due to reinsurance shortages (85% loss, per CSAC) and post-2020 shifts in public perception of high-risk jobs (e.g., after George Floyd). This leads to fewer options and higher premiums, with some counties facing 1000% spikes in related coverages. Workers’ comp follows suit, as noted in Gallagher’s 2025 public sector trends analysis.

Small or rural counties like Lake and Mendocino (neighbors to Sonoma) echo these issues, with officials pushing for reforms like better fraud prosecution and de-escalation training to lower claims.

California Counties Face Skyrocketing Insurance Costs