Experience Rating

What is Experience Rating (Workers Compensation Rate)?

Experience rating is a method of adjusting premium rates based on the individual employer's accident experience.  Employers are provided a premium rate statement or assessment rate statement from their provincial workers' compensation board that indicates the rate per specified amount of wages an employer pays for Workers' Compensation coverage.  This amount can be impacted positively or negatively based on the past claims history of the employer. 

Refer to your provincial workers' compensation board for more information on how ratings are set. 

Workers' Compensation Boards:

• WCB - Alberta, Manitoba, Nova Scotia, Prince Edward Island, Saskatchewan
• CNESST - Quebec
• WSIB - Ontario
• WorkplaceNL - Newfoundland
• WorkSafe - British Columbia, New Brunswick

How is the experience rate adjustment (percentage) calculated? 

The percentage adjustment shows whether an employer received a discount (negative % adjustment) or surcharge (positive % adjustment) based on the industry or class rate that the employer is assigned.  Employers may also receive a rating equal to industry rate (zero adjustment) or Not Applicable should they not meet certain criteria in order to assign a rating.  This is typically for new companies or companies that do not pay enough in premiums to establish a rating.

The adjustment is automatically calculated using the formula:

(Employer Rate - Industry Rate)/Industry Rate = Percentage Adjustment(+/-)

How does my rating affect my status for my client(s)? 

Clients establish a threshold by comparing a vendor's Workers' Compensation rate in comparison to their industry's average premium rate.  This is typically equal to or less than the industry rate.

Refer to the Prequalification Requirements page of the application for your client's specific requirements. 

How do I know which provinces I'm required to submit a rate statement for? 

Rate statements are required for your primary province (province in which you were invited to work by your client) as well as secondary provinces where you may be providing work or services.  Select the appropriate provinces on the Insurance tab of the application to upload your supporting documentation for each province separately.  

Note: document descriptions (rate statement, assessment rate, experience rate, etc.) may vary by province.