CANADA Work Comp Premiums Lowest Rates in 30 Years

British Columbia 2010 Premium Rates Remain Among the Lowest in 30 Years

Employers’ 2010 average base premium rates will remain the same as the last two years at $1.56 per 100 of employers’ assessable payroll, WorkSafe BC announced. The numbers are the lowest rates in more than three decades, down from a high of $2.29 in 1996.

The average published base premium rate is a composite of rates in 66 individual rate groups, which function as separate mutual insurance pools for B.C.’s industries. Insurance premium rates for B.C.’s 200,000 registered employers are based on the claims cost (or safety) history of their industry and similar employers, and on individual performance.

In 2010, 41% of employers will see their base premium rates decrease from 2009, 5% will see their base rates remain the same and 54% of employers will see their base rates increase. WorkSafeBC said it recognizes the financial hardship that the current economic climate has exacted on many employers in B.C.

In response, WorkSafeBC has determined that, in addition to keeping the average base premium rate constant, no industry will experience a base premium rate increase of more than 8 percent between 2009 and 2010. Any premium shortfalls that arise will be incorporated into the rates of those industries in 2011 and beyond when it is anticipated employers will be better able to absorb an increase.

“Employers’ premium rates in B.C. will remain among the lowest of any jurisdiction in Canada in 2010,” said WorkSafeBC’s Chief Financial Officer, Steve Barnett. “We need to ensure that the workers’ compensation system remains affordable and sustainable for B.C. employers and workers.”

Industries With Base Rate Decreases

Rate decreases are announced for auto dealers, insurance and accounting, home support services, open pit mining, painting, plumbing, and finishing carpentry.

Industries With Base Rates Remaining the Same

Trucking, forestry, commercial construction, public schools, local government, and computer consulting will see their preliminary rates remain virtually unchanged or will incur very modest increases. (workersxzcompxzkit)

Industries With Base Rate Increases

Industries whose rates are to increase include restaurants, supermarkets, house construction, engineering, sawmills and paper mills, bus lines, couriers, dump trucks, oilfield contracting, and most health care services.

View The 2010 Rates

Information regarding the 2010 rates is available on WorkSafeBC web site at WorkSafeBC.com, where interested parties can find the base rate for a specific classification unit, search by classification unit name or number, or browse by industry sector.

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: Robert_Elliott@ReduceYourWorkersComp.com or 860-786-8286.

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker about workers’ comp issues.