March 25, 2025 | Santa Monica, CA — MedLegalNews.com — Santa Monica Workers’ Compensation program experienced a 29.5% surge in total liabilities during the 2023-24 fiscal year. Notably, three catastrophic claims drove this sharp increase, accounting for $7.9 million of the $8.2 million total rise. Analysts attribute much of this growth to high-risk operations within public safety departments, where severe injuries can result in long-term medical care and significant disability payments.
The spike highlights ongoing challenges for city administrators in managing the financial impact of catastrophic workplace incidents while maintaining sufficient reserves to cover future claims. Experts suggest that proactive risk management, enhanced safety protocols, and early intervention strategies could help mitigate similar liability surges in the coming years.
Significant Increase in Program Liabilities
City Finance Director Oscar Santiago reported that, by June 30, 2024, total program liabilities had increased to $36 million, up from $27.8 million the previous year. However, despite this significant rise, the city’s self-insured retention program liabilities dropped slightly by 0.4% to $24.3 million, marking the lowest level recorded in a decade. Consequently, this decrease reflects improved stability in certain areas of the city’s workers’ compensation framework.
The contrasting trends suggest that while catastrophic claims drove overall liability increases, the city’s risk management strategies have been effective in controlling routine claims and smaller incidents. Investments in employee safety training, updated workplace protocols, and targeted monitoring of high-risk departments appear to have contributed to the modest decline in self-insured retention liabilities. This indicates that Santa Monica is gradually strengthening its workers’ compensation framework, balancing the financial pressures of major claims with proactive measures to reduce future exposure.
Catastrophic Claims from High-Risk Departments
The report did not specify details about the catastrophic claims. However, it noted that one claim originated from the police department, while the other two came from the fire department. Historically, these departments pose the highest risk for workplace injuries among city employees. Moreover, these sectors continue to contribute disproportionately to the city’s overall workers’ compensation liabilities.
These catastrophic cases underscore the ongoing challenges Santa Monica faces in managing workplace safety for high-risk departments. Police and fire personnel frequently engage in physically demanding and hazardous tasks, increasing the likelihood of severe injuries that result in long-term medical care and substantial compensation payouts. City officials are now reviewing safety protocols, training programs, and early intervention measures to help mitigate the financial impact of future catastrophic claims while ensuring that employees receive timely support and benefits.
Strategies to Manage Santa Monica Workers Compensation Costs
City administrators are exploring a range of strategies to manage rising Santa Monica workers compensation costs more effectively. These measures include enhanced safety training for high-risk departments, early reporting and intervention for workplace injuries, and stronger collaboration with claims administrators to monitor large claims closely.
Additionally, data-driven risk assessments and investment in modern equipment aim to reduce the likelihood of catastrophic incidents. By proactively addressing both prevention and claims management, Santa Monica seeks to stabilize its workers’ compensation program while protecting employees and maintaining fiscal responsibility.
For official guidance on workers’ compensation in California, visit the California Department of Industrial Relations (DIR).
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FAQs: About Santa Monica Workers Compensation
What caused the recent surge in Santa Monica workers compensation claims?
The surge was driven primarily by three catastrophic cases, including incidents in the police and fire departments, which accounted for the majority of the liability increase.
Which departments contribute most to Santa Monica workers compensation liabilities?
Historically, the police and fire departments pose the highest risk for workplace injuries and continue to represent a significant portion of Santa Monica workers compensation claims.
How does Santa Monica manage high-cost workers compensation cases?
The city uses a self-insured retention program and risk management strategies to control high-cost claims while maintaining compliance with California workers compensation regulations.
What steps can employees take regarding Santa Monica workers compensation claims?
Employees should report workplace injuries promptly, follow departmental safety protocols, and consult with claims administrators or legal advisors to ensure proper benefits and coverage.