WCIRB Report Quantifies Comp's Earthquake Risk

How much a major earthquake in California might cost workers’ comp insurers depends in large part on whether the quake occurs during normal business hours, according to a new report from the Workers’ Compensation Insurance Rating Bureau. A 1-in-100-year earthquake could cost up to $300 million. But an earthquake of the same intensity during peak work hours — defined as 11 a.m. on a weekday — could generate losses in excess of $1.5 billion. Losses from a 1-in-250-year event could hit $1.4 billion outside of peak hours but exceed $5.1 billion during busin...