Reminder: Annual Report of Inventory Due 4/1/26

DWC’s deadline for filing the 2025 Annual Report of Inventory for Claims Reported During CY 2025 (Form DWC-851, Rev.1-2026) is Wednesday, April 1, 2026. The form was emailed to all Claims Administrator contacts earlier this month, but can also be accessed here.

The state’s electronic data reporting regulation [CCR 9702 (i)(3), www.dir.ca.gov/t8/9702.html] allows the DWC to waive the obligation to submit the ARI if the AD determines that a claims administrator has demonstrated the capability to submit complete, valid, and accurate data via the Workers’ Compensation Information System, but few claims administrators currently have a waiver. Thus, per CCR §10104, most insurer, TPA, and self-administered, self-insured employer and JPA adjusting locations in the state must still complete the ARI form indicating the number of claims at that location for the preceding calendar year, and submit it to the DWC Audit Unit. The inventory must be filed even if the adjusting location had no claims reported to it in the prior year, and regardless of whether it received an inventory form from the DWC. Failure to submit the report by April 1 may result in penalties of up to $500 per adjusting location.

Claims administrators that have a valid ARI waiver must still file an Annual Report of Adjusting Locations providing the state with a list of all of their adjusting locations that were operating as of December 31, 2025. Prior to 2019 claims operations with waivers used a separate form (DWC Form 857) to provide this information, but the DWC merged Form 851 and Form 857 in 2019, incorporating changes that include the addition of the company’s current contact information for complaints. The complaint contact information was added after the Audit Unit changed its complaint process to match the process used by the Dept. of Insurance, and it must be provided by all claims administrators, including those with an ARI waiver who otherwise only need to complete the top portion of the DWC 851 form.   

The DWC recommends submitting Form 851 prior to the April 1 deadline as any document received after that date will be subject to a penalty for late reporting. The DWC prefers that the form be emailed to the Audit Unit at DWCAuditunit@dir.ca.gov, but it can also be sent by first-class mail to:

State of California Department of Industrial Relations
Division of Workers’ Compensation – Audit Unit
160 Promenade Circle, Suite #340
Sacramento, CA 95834-2962

Upon receipt, the Audit Unit will issue a confirmation via email. Any revisions to the information reported in the ARI or Annual Report of Adjusting Locations must be made within 45 days of the effective date of the change. 

A DIR web page with details, instructions as well as the updated inventory form is posted here. Questions about these reports may be submitted to the DWC Audit Unit via email (DWCAuditUnit@dir.ca.gov) or by phone, (916) 928-3180 or 213-620-2312.