Please see below for the full release from WorkSafeBC announcing the base premium rates for all BC employers.
Richmond, B.C., October 14, 2010 — WorkSafeBC has announced that it is reducing employers’ average base premium rates by 1% to $1.54 per $100 of employers’ assessable payroll in 2011. WorkSafeBC’s average published base rates for 2008 through 2010 was $1.56. The rates will continue to be among the lowest in Canada.
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 percent of employers are expected to increase. This is due in part to the reinstatement for 2011 of the normal rate-change cap of +/- 20 percent. WorkSafeBC limited all base rate increases for 2010 to a maximum of 8 percent in recognition of the financial stress imposed on B.C. employers by the economic downturn in 2009.
Approximately half of the employers whose base rates will increase in 2011, had their base rate increase limited to 8 percent in 2010.
“WorkSafeBC is committed to ensuring that the workers’ compensation system remains affordable and sustainable for employers and workers,” said WorkSafeBC’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,” said Barnett.
Premium rates charged to employers must be sufficient to cover the current and future needs of B.C.’s 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, WorkSafeBC 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.
View the 2011 rates
Information regarding the 2011 rates is available on WorkSafeBC’s 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.
Additional resources
WorkSafeBC is an independent provincial statutory agency governed by a board of directors that serves about 2.3 million workers and more than 200,000 employers. WorkSafeBC was born from the historic compromise between B.C.’s workers and employers in 1917 where workers gave up the right to sue their employers and fellow workers for injuries on the job in return for a no-fault insurance program fully paid for by employers. WorkSafeBC is committed to safe and healthy workplaces and to providing return-to-work rehabilitation and legislated compensation benefits.
For more information, contact:
Donna Freeman
Director Media Relations
WorkSafeBC
604 276-3141
Donna.Freeman@worksafebc.com
Scott McCloy
Director Communications
604 276-5157
Scott.McCloy@worksafebc.com
