Employer Rates: Workplace Safety, RTW and Employer Cost Reduction
The 2010 assessment rates announcement to employers by the Workers’ Compensation Board (WCB) of Nova Scotia offered an opportunity to remind employers of the importance of injury prevention and return to work as a means of reducing the cost of workplace injury insurance especially in tough economic times.
“It’s more important than ever to focus on creating a safety culture in Nova Scotia,” said Nancy MacCready-Williams, CEO. “Safety is good business, and improvements in safety and return-to-work programs translate into lower costs for workplace injury insurance – which means employers can save money. But, more importantly, it means employees stay safe on the job.”
Almost half (46%) of the 18,000 employers covered by the WCB will see their rate go down or stay the same next year. Home support, metal tank manufacturing, framing, and hardware and paint stores are among the industries seeing rate decreases.
Rates will increase for 54% of employers. Second-hand merchandisers, tire shops, shipbuilding, and concrete and cement manufacturing are among the industries seeing significant increases.
A 1,000 fewer people were seriously injured (where they lost time from work) since 2005. Injured workers are returning to work in a safer and timelier manner following their injuries. Many employers are seeing their rates go down because of improvements they are making in safety and return-to-work programs in their workplaces.
“Employers are in an incredible position of influence when it comes to workplace safety. It is important for them to show leadership and to commit to making safety a priority,” said MacCready-Williams. “We know that the greatest cost of injury is not financial at all. We are already seeing signs that the economy will recover, but the 29 people who died at work in Nova Scotia last year are lost to their families forever. That is the real tragedy.”
Again this year, the WCB is issuing surcharges to employers whose claims costs are significantly and consistently higher than their industry peers. Surcharges help to more fairly allocate the costs of Nova Scotia’s workplace injury, and they provide strong encouragement for employers to make improvements in their safety and return-to-work performance. (workersxzcompxzkit)
In 2010, 77 employers – less than 0.5% of employers covered by the WCB – will be surcharged. Of those, 38 will be surcharged for the first time, 18 for the second time, and 21 for the third time. To be surcharged, an employer’s claims costs must be at least three times their industry average for at least four consecutive years.
Surcharges start at up to 20% of the industry rate, and they are cumulative – up to an additional 20% of the industry rate each year. A surcharge is applied after an employer has received two previous warning notices.
Last week, first warning notices were being sent to 175 employers, and 92 employers were to receive their second warning that a surcharge may be applied to their rate if their claims costs do not come down.
Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-786-8286.
We are accepting short articles* (200-600 words) on WC cost containment. Contact us at: [email protected]. *Non-compensable.
Try Our FREE
WC IQ Test: http://www.workerscompkit.com/intro/
Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.
©2008 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact [email protected]
