Effective January 1, 2020, the Workplace Safety and Insurance Board (the “WSIB”) is changing the way premium rates are set for over 300,000 Ontario businesses covered by its workplace injury and illness insurance.
The new model will change the way businesses are classified, boosting fairness and increasing transparency as to how premium rates are set and adjusted.
The WSIB’s new model will use a two-step approach to set and adjust premium rates for businesses:
- Set an average rate for each industry class based on their risk profile and share of responsibility to maintain the insurance fund.
- Examine how a company’s individual claim history compares to the rest of the businesses in its class. This means that businesses’ overall rates under the new model will reflect their individual claims experience and risk.
The WSIB will be using insurable earnings, claims costs and the number of allowed claims, over a six-year period to set premium rates. For new businesses with less than one year of experience, premium rate will be the class rate.
Contact a member of Crowe Soberman’s team of professionals for assistance in understanding how the new WSIB rate model may impact your business or organization.
This article has been prepared for the general information of our clients. Specific professional advice should be obtained prior to the implementation of any suggestion contained in this article.