An Increase is Expected
Labor and Industries (L&I) recently announced proposed 2024 base rates for each of Washington’s 300 industrial insurance risk classifications. When considering all risk classes in the state, the proposal amounts to an average 4.9% increase, although specific risk classes may see rates move higher or lower than that. Much of the increase is the result of three consecutive years of higher-than-normal increases in the state’s average wage.
How are Base Rates Determined?
Base insurance rates vary by risk class and industry type. The rate you pay is determined by your company’s workers’ compensation experience. L&I looked at the hours and claims reported for your company from July 1, 2019, to June 30, 2022, to estimate how much loss you are likely to have next year. From there, they determined how much premium they need to collect to pay for those losses.
There are things you can do now to lower your experience modification factor in future years and lower the amount of premium you’ll need to pay for your industrial insurance.
- Build a strong safety program. Safety is the most proactive thing an employer can do to improve worker’s compensation performance. Avoiding injuries lowers your overall premium and helps maximize your refunds if you participate in the Retrospective Rating (Retro) program.
- When injuries happen, return your employees to work as quickly as medically appropriate. Time away from work is detrimental to you, your employees and your bottom line. By bringing people quickly back to work you can lower claim costs, lower your insurance premiums and increase your Retro refunds.
- Take advantage of all the financial incentives available to you. Most people know about the premium refunds that participation in a retro group can provide. However, there are additional financial incentive available including reimbursements for injured employee wages paid and special discounts for avoiding time loss in your claims.
Get More Information
Go online to read L&I’s announcement, look up your risk class rates and get access to the virtual rates hearings on Oct 26, Oct 27 or Oct 31. At the hearings, you’ll have the opportunity to provide public comments on the new proposed rates that will go into effect on January 1, 2024. Notification of final rates will be sent out in December.
If you would like to find out what your unique projected 2024 experience modification rating (EMR) and premium rates will be and understand how you can reduce your rates in the future, please contact us.