is a Terrible
Place to Be!
Getting hit by the maximum surcharge
penalty can affect not only your costs, but
even your ability to bid on certain projects
By Clifford Gerow, Injury Solutions Canada, Inc.
In the Quarter 2 2017 issue of Think BIG, we dis-cussed
getting ready for big changes in the way
Workers’ Compensation Board (WCB) premi-ums
will be calculated. Those employers using the
WCB insurance system in way of claims will be hit
with a significantly higher premium rate.
In this article, we wish to help you understand
what a terrible place it is to be in a WCB surcharge
position. For those unaware, the WCB, like most oth-er
insurance companies, sets a standard rate for busi-nesses,
vehicle owners, home owners, etc. that are in
a similar situation. The WCB also does this in the
form of Rate Codes. All businesses that do similar or
like-minded work are batched in a group called a rate
code. After much research into overall injury rates,
costs of claims, etc., they establish a premium rate
for that Rate Code. Every employer in the same rate
code starts out getting assessed the same premium
rate for every $100 of assessable payroll.
If you do not have any injuries and WCB claims or
costs, your firm may be eligible for a discount that
can be up to 30 per cent (25 per cent for small em-ployers),
which can lead to significant savings to the
employer. This makes them far more attractive and
saskheavy.ca | Quarter 3 2017 | Think BIG 53