Workers’ Comp News

How to Earn a Workers’ Compensation Premium Discount

Every company in Washington with employees must buy workers’ compensation insurance. How much you pay is up to you. Most employers are required to purchase this insurance through the Department of Labor & Industries (L&I). Much like a safe driving discount, L&I offers a claim-free discount to those employers who provide a safe work environment. This discount can lower your premium by as much as 10% to 40%, which in turn, lowers your overhead costs. Keeping these costs low can be a competitive advantage within your industry.

How do you earn this discount? As an employer, you must avoid L&I paying wages to employees who spend time away from work due to an injury (time loss). If you can avoid time loss for a period of three years or more, your company could be eligible for the claim-free discount. Your first step is building a strong and proactive safety program and then, if injuries happen, bring your employees back to work as quickly as possible. In places where a small amount of time is missed while putting your light-duty job offer together, you can pay workers their regular wages instead of letting L&I pay time loss. These are your best tools to eliminate the compensable, indemnity claims that raise your rates and remove your eligibility from getting a claim-free discount.

Once you’ve avoided indemnity claims for 3 years, L&I will calculate your rates and then reduce them even further by applying the claim-free discount. Your discount depends on the size of your company and the number of hours you report, with larger companies earning a bigger discount.

Do you know if you qualify now for a claim free discount or what you need to do to earn one? Contact your WHCA Group Manager, Stephanie Scheurich, or Claim Manager for more information!