Experience Rating
Your experience rating takes your individual workplace’s safety record into consideration and uses it to either lower or increase your rate.
When we calculate your experience rating, we look at the costs of injuries that occurred during the most recent 3 full calendar years. We also give more weight within our rate calculations to claim costs for recent injuries than we do to older ones. The size of the merit or demerit resulting from experience rating is determined by a comparison of your cost ratio with the average cost ratio in your rate group.
Experience Rating Adjustments may range from -10% to +20% for small employers, and from -30% to +60% for large employers.
Experience Rating provides an incentive for you to create a safer working environment. Implementing return-to-work programs and safety committees is one way to do this. Involving your workers will improve buy in. Improved safety results in fewer lost work hours means happier and healthier workers and lower claim-cost experience. Working together, employers and workers who reduce injury costs can have a direct influence on assessment rates.