Rates for workers’ compensation insurance will drop by 2.5 percent for many businesses in Washington in 2018, the state Department of Labor & Industries has announced.
The rate decrease means employers will pay about $34 less a year per employee for workers’ compensation coverage in 2018. The rate drop will save Washington employers $67 million in premiums.
“We’ve made several improvements that are helping injured workers heal, return to work sooner and avoid long-term disability,” said Sacks. “We’ve also used small rate increases in recent years to make the workers’ compensation system healthier and to build our contingency reserve. As a result, we’re able to cut premiums in 2018.”
The department attributes the decrease to a number of factors including improved economy, focus on safety, and L&I initiatives that ensure injured workers recover sooner, thus, lowering the cost of workers’ compensation.
According to the Department, one example of an improvement to the workers’ compensation system involves providing injured workers vocational support and assistance much earlier in claims. It’s helping people hurt on the job return to work sooner. The rate of workplace injuries that develop into long-term disability is down by more than 18 percent from 2012.
The 2.5 percent workers’ compensation premium decrease is an average; individual employers may see smaller or larger drops depending on that employer’s industry and claims history. For that same reason, some employers will see increases.