While overall average rate drops one per cent, many firms will face higher premiums as temporary cap on rate hikes removed
WorkSafe BC, British Columbia’s workers’ compensation board, is reducing employers’ average base premium rates by one per cent to $1.54 per $100 of employers’ assessable payroll in 2011.
The average published base rates for 2008 through 2010 was $1.56.
The average published base rate is a composite of rates in 65 individual rate groups, or insurance pools, which are compilations of various classification units. Insurance premium rates for B.C.’s 202,400 employers are based on the claims cost (or safety) history of their industry and of similar employers, and on individual performance.
A shift in the mix of industries that comprise B.C.’s payrolls — with higher risk payrolls (for example, forestry) decreasing at a faster pace than the average — contributed to the decrease in the average premiums.
Premiums for 56 per cent of employers are expected to increase. This is due in part to the reinstatement for 2011 of the normal rate-change cap of plus or minus 20 per cent. WorkSafeBC limited all base rate increases for 2010 to a maximum of eight percent in recognition of the financial stress imposed on B.C. employers by the economic downturn in 2009.
About one-half of the employers whose base rates will increase in 2011 had their base rate increase limited to eight per cent in 2010.
“WorkSafeBC is committed to ensuring that the workers’ compensation system remains affordable and sustainable for employers and workers,” said WorkSafe BC’s chief financial officer, Steve Barnett. “Resuming the normal rate-change cap, at a time when the B.C. economy continues to strengthen, ensures that we can continue to support injured workers without burdening future generations. It’s also important to recognize that industries can influence their rates by improving safety and return-to-work programs with effective disability management.”
Premium rates charged to employers must be sufficient to cover the current and future needs of injured workers, some of whom will require financial and medical aid for the rest of their lives. To support those needs and maintain low and stable rates, WorkSafe BC invests a portion of the funds collected from employers.
Industries with proposed base rate decreases
Rate decreases are projected for the following industries: restaurants, convenience stores, couriers, real estate agencies, telephone and cable services, medical and dental practices, accounting, gas utilities, greenhouses, veterinary services, construction labour supply, heavy equipment manufacture, travel agencies, brokering, distribution centres, warehousing, orchards and berry farming, publishing, and business consulting.
Industries with proposed base rate increases
Industries whose rates are projected to increase include supermarkets, house construction, building construction, electrical work, oil or gas production, wharf industries, electric utilities, bus lines, commercial laundry and commercial cleaning, furniture stores and flooring stores, underground mining, printing, most health care services, ranching, fishing, local governments, law enforcement, financial services, hotels, sawmills, and education.
Industries with base rate remaining the same
General retail, trucking, forestry, short-term care, building management, landscaping, retail bakeries and coffee shops will see that their rates remain virtually unchanged or will incur modest rate changes.
