Employers across Canada open their WCB rate assessment letters each year, often to be met with an unwelcome surprise: higher premiums. The reasons for these increases can be unclear, leading many to assume that rising rates are simply unavoidable. While WCB premiums are a necessary part of doing business, they don’t have to keep climbing. With the right strategies in place, employers can not only understand these changes but also take proactive steps to manage and even reduce costs.  

Understanding How WCB Premiums Are Calculated 

While each province has its own specific mechanism for assessing WCB premium rates, the process shares some common elements across Canada. Generally, employers are assigned “WCB classification unit” with businesses of similar natures. All businesses within that classification unit have their premiums determined in relation to that base rate.  

However, the biggest factor that determines what an organization actually pays is its claims experience. If a business reports fewer or less costly claims than others in its classification unit, it can qualify for significant discounts – up to 50% off the base rate. On the other hand, higher-than-average claim volumes or costs can result in surcharges of up to 100%. This adjustment, whether a discount or a surcharge, is known as the “experience rating adjustment”. 

How to Reduce Your WCB Costs 

With the experience rating system, organizations have a clear opportunity to lower their WCB payments by actively managing workplace safety and reducing claims. Here are some strategies to help reduce costs: 

  • Develop a comprehensive Workplace Health and Safety Program: Preventing injuries is the first step toward minimizing claims and lowering costs.  
  • Create a robust modified duties program: Offering modified duties to injured workers as soon as possible can help speed up their return to work, reducing both claim duration and costs.  
  • Proactively manage claims: Swift and efficient claims management can prevent costs from escalating. 

One of the most effective strategies is to use outsourced professional claims management services like those offered by Disability Management Institute (DMI). When an injury occurs, DMI steps in to minimize financial impact of accidents and facilitate early returns to work. DMI’s WCB Claims Management Team supports both you and your employees, cutting through the red tape, saving time, and ultimately reducing costs.  

What can DMI Do for you? 

DMI offers proactive WCB claims management that delivers comprehensive support, including: 

  1. Thorough Review of WCB Decisions: Ensuring claims decisions comply with relevant policies. 
  2. Program Development and Training: Helping you build effective safety and claims management programs. 
  3. Ongoing case management: maintaining regular contact with WCB case managers to ensure timely case progression.  
  4. Professional appeals management: handling appeals effectively to ensure fair outcomes.  
  5. Successful return-to-work planning: facilitating a smooth return to work for injured employees.  

This approach benefits everyone: employees return to full earnings fasters, while your business reduces both direct and indirect costs of prolonged absences.  

Discover Your Savings Potential—Talk to an Expert 

Ready to explore how you can lower your WCB premiums? Visit DMI’s Claim Management page to learn more. You can request a free, no-obligation review of your WCB claims experience from a DMI expert to determine how you can benefit from DMI’s claims management services.