YOU ASK:

What are the functions of the Workers Compensation Insurance Rating Bureau?

WE ANSWER:

The Workers Compensation Insurance Rating Bureau is a key institution for businesses wishing to apply for workers compensation and employers liability insurance. It rates every business participating in the program on the basis of each individual company's income and financial performance, and calculates the workers compensation amount accordingly.

What the Workers Compensation Insurance Rating Bureau Does

The Workers Compensation Insurance Rating Bureau has very important functions:

It evaluates each workers compensation applicant on the basis of their earnings and performance, and gives them different rating points which - in turn - determine the amount each employer will pay in compensation to their workers in the event of occupational illness, work-related injury or disability. A company's rating estimated by the Workers Compensation Insurance Rating Bureau rises proportionately with the increase of business income.

To evaluate a company and thus determine its rating, the Workers Compensation Insurance Rating Bureau does an analysis of its business performance for a period of three years preceding the current financial year. The evaluation includes a balance of the company's payroll, gains and losses.

An employee who has suffered a work-related injury will get a certain share of their earnings while they are on sick leave, typically amounting to no less than two-thirds of their wages.

The rating analysis is conducted once every three years.

Some Workers Compensation Tips for Employers

It is not easy to maintain workers compensation insurance: since the workforce and the business environment are dynamic, ever-changing concepts, business owners need to make sure they keep up-to-date with the changes. Here is how to:

  • Review all the information that the Workers Compensation Insurance Rating Bureau has included in your policy and make sure there are no errors.
  • Allow yourself plenty of time to review your business information before the end of the current policy period. Six months will be enough for you to get prepared for the next policy term.
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