For 2010, the Ontario’s Workplace Safety and Insurance Board (WSIB) will use the same method for setting premium rates as in previous years – but with one important change.
1. Premium rates will be frozen for rate groups with good health-and-safety performance. Over 200,000 employers’ premium rates will remain at 2009 levels in 2010.
2. Rates will increase for poor-performing rate groups, about 36,000 employers, compared to 90,000 in recent years.
It’s All About Accountability
Industry accountability for workplace insurance costs remains key to the WSIB’s approach to rate-setting. according to WSIB Chair Steve Mahoney and good performance must be rewarded.
Employers investing in safety, keeping their injury rates down claim durations short will be rewarded with no rate increase
Employers in rate groups placing the greatest financial burden on the system (due to fatalities, injuries and illnesses in their workplaces) will experience premium rate increases, calculated proportionally by looking at claims costs and injury frequency.
“The costs of running Ontario’s workplace safety and insurance system was impacted by recent increases to benefits, poor investment returns, and the current global financial crisis,” said Mahoney said. “We must take decisive action to maintain the financial sustainability of the system, while being fair to the workers and employers who rely on it.” Employers eligibility for rebates continues.
The WSIB maximum insurable earnings ceiling for 2010 is $77,600, and increase of 4% $74,600 in 2009. Changes to the Maximum Insurable Earnings Ceiling are directly linked to changes in average earnings in Ontario as measured by Statistics Canada, and provisions under the Workplace Safety and Insurance Act. (workersxzcompxzkit)
The WSIB will post detailed information about the 2010 preliminary premium rates – including details of rate increases for rate groups with poor health and safety records at http://www.wsib.on.ca. The WSIB is releasing preliminary rates as early as possible to assist employers with their financial forecasting and budgeting for next year. Approval of the final premium rates for 2010 is scheduled for the September WSIB Board of Directors’ meeting.
Author: Robert Elliott, J.D. Robert Elliott is a workers’ compensation consultant experienced in helping employers reduce their workers’ comp cost 20-50%. He can be reached at [email protected]
Workers’ Comp Kit Books & Guides: http://www.reduceyourworkerscomp.com/workers-comp-books-manuals.php
WC Calculator: www.reduceyourworkerscomp.com/calculator.php
TD Calculator:www.ReduceYourWorkersComp.com/transitional-duty-cost-calculator.php
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