Some Fast Facts about WCB
As an employer, you work with the Worker’s Compensation Board (WCB), but how much do you really know about the WCB itself? DMI is here to help you get a better understanding of the organization.
1. Who pays for the WCB?
The entire worker’s compensation system goes unfunded from the government, which means all costs are borne by employers. This means that you, the employer, pay premiums based on your type of business activity and about 95% of these paid premiums are experience-rated.
2. What does experience rating mean to you as the employer?
Premium rates are based on the claims experience of each rate group. Experience rates are based on historical data and trends, such as :
- Your organizations history of workplace accidents
- The industry sector you are assigned by the WCB
- The safety history of that sector, rate groups that have higher risks for injury and illness are charged higher premiums
- As well as your safety history compared to others in the same industry sector
Claim costs are carried for three or more years and affect your premiums until they fall off the accident-history timeline. For instance, a lost time claim going back three to four years may still impact your current year’s costs.
3. What impacts my expected claim costs?
Premium rates are a direct result of the frequency of workplace injuries, as well as the length of time injured workers are off the job. Rebates are issued or surcharges levied depending on how your ‘Actual Claim Costs’ compare to your ‘Future Projected Costs.’ So you are more likely to receive a surcharge (an increase in your costs) if you have more ‘Lost Time Claims’ and your workers remain off work longer.
If you want your premiums to change, you need to reduce your injury rates and maintain a more structured and safe return-to-work scheme for injured workers.
While managing a WCB claim may appear cumbersome and time-consuming, it is very important to return workers to the workplace in an efficient manner. Simply put: fewer injuries, safer work practices, and more timely returns to work will translate into lower premiums.
Blog author Angela De Forest, Regional Manager at Disability Management Institute (DMI). Disability Management Institute has been providing disability management solutions to more than 1,500 clients across Canada since 2002. With offices in Port Coquitlam, B.C. and Barrie, Ontario, DMI provides clients with the following value added services: non-occupational claim management, WCB/WSIB claims management, sick leave or STD claims review, and return-to-work planning.