What is experience rating?
Experience rating is a method for adjusting premium rates to reflect an individual employer's claims history,
providing an incentive for emphasizing safety and injury prevention in the workplace. Premiums set under the
WCB's
Experience Rating Program more accurately reflect individual employers' accident experience. Employers
may receive discounts off their premium for good claims records or may be surcharged for their poor claims records.
How the program works
The Experience Rating Program looks at an employer's claims history over a three-year period, or "evaluation window",
and assesses whether or not a discount or surcharge is appropriate.
Discounts or surcharges are calculated at the same time as annual rates and are applied to the employer's industry
premium rate for the next year. Employers receive notice of both their premium rate and any applicable discount or
surcharge at the same time. That way, they can see their net due premiums at a glance and get a good picture of how
their claims experience affects the premiums they pay.
All employers are included in the Experience Rating Program and will participate in either the Standard or Advanced
Program based on their premiums paid over a three-year period.
- Employers who have paid premiums of less than $15,000 over
three years will participate in the Standard Program.
- Employers with $15,000 or more in premiums over three years
will participate in the Advanced Program.
Experience Rating