L&I Workers Comp Rate Refresh
Annually on June 1, the Department of Labor and Industries (L&I) reevaluates business workers’ compensation claim expenses to calculate unique rates for the following year. This year, L&I will audit individual companies’ claims between July 1, 2018, and June 30, 2021, to establish 2023 worker’s comp rates and experience modification factors (EMF).
But what affects rates? How are premiums established?
L&I looks back at this three-year span and sets a company’s EMF based on how their claims compared to the rest of the companies in the same risk class. More injuries and costs mean higher premiums for coverage.
But rates aren’t only calculated on an individual basis. They’re also calculated by industry and separated into risk classifications. Industries like healthcare and agriculture have a higher rating, whereas fields like education and retail are typically lower.
“Safety benefits everyone. Your peers, employees, supervisors, and even your bottom line.”
Generally, the construction industry is considered a high-risk workplace, but risk class is set by the claim average of businesses in the same industry and is only a contributing factor in calculating the overall rate. This means that reducing the number of claims in your workplace doesn’t only affect your business but the risk classification of your industry as a whole.
Safety benefits everyone. Your peers, employees, supervisors, and even your bottom line.
Worried about your rates? It’s not too late! Here are two steps you can take now:
Return any injured employee back to physically appropriate work as soon as safe and possible. This avoids time-loss and expense to your claims and will help claims close faster. Not sure if you have work available? Contact GRIP, we’re here to help you!
Close as many open claims as possible. Open claims when calculating future L&I rates mean additional estimated costs for future expenses. Closed claims don’t.
This is the time to reduce your claims costs as it will pay dividends moving forward. Work with your claims manager for strategies to return injured employees to the workplace, close claims, reduce costs, to reduce your L&I rates.
Want to learn more about the rate-setting process? Contact our GRIP team at mbagrip.com and use our “start saving” form today!