The Experience Rating Impact of Serious Injuries:
A Review of Injuries Resulting in Ministry of Labour
Convictions
The Workplace Safety and Insurance Board’s (WSIB’s) Experience Rating Program provides
incentive to employers to reduce injuries and illnesses and encourage return to work. Serious
workplace injuries lead to significant costs to the employer through these programs. An employer
may also be prosecuted by the Ministry of Labour (MoL) if they deem a workplace to be unsafe
resulting in possible fine(s) and conviction(s).
To understand the relationship between serious injuries and experience rating, the WSIB conducted
an analysis of all Ministry of Labour (MoL) convictions dating back to January 2009 and relevant
claims to determine the direct impact to an employer’s premiums. Using information found within
each MoL conviction notice we matched the listed employer to a WSIB registered employer and
located the resulting claim. For employers covered under the NEER or CAD-7 Programs, the claim
cost information was then used to determine the impact on that employers’ experience rating. Once
this was completed the information was summarized.
Summary of Analysis
Based on our findings, an employer’s experience rating is significantly impacted as a result of a
workplace accident. For an employer convicted of a MoL offence this translates to, on average,
hundreds of thousands of dollars to the employer’s premiums.
Fatality Convictions
From January 2009 to October 2014, 84 claims were matched to MoL convictions as a result of a
workplace fatality. Overall, 53 employers from this group of claims participated in either NEER or
CAD-7 experience rating. The collective experience rating impact on these employers was in excess
of $15 million. This takes into account 23 employers who had a Fatal Claims Adjustment applied for
a total of $8 million. On average, the impact to an employer’s experience rating was $286,000. This
is in addition to the average fine of $197,000, bringing the total average cost to $483,000.
Injury
From January 2009 to October 2014, 180 claims were matched to MoL convictions as a result of a
workplace injury. Overall, 153 employers from this group of claims participated in either NEER or
CAD-7 and the combined experience rating impact was $14.5 million. On average, the impact to an
employer’s experience rating was $94,000. This is in addition to the average cost to the employer by
an average of $71,000 for a total average cost of $165,000.
Some key considerations
When reviewing conviction notices, it is important to note that not all can be directly matched to a
WSIB claim. This could be due to a variety of reasons, such as; the convicted employer did not have
a requirement to be registered with the WSIB, a claim was charged to another employer and not the
convicted employer or the accident resulted in an injury to an individual that was not a worker (e.g. a
customer of the accident employer).
Office of the Chief Strategy Officer |Strategic Planning & Outcomes
Workplace Safety and Insurance Board
Commission de la sécurité professionnelle et de l’assurance contre les accidents du travail
What is Experience Rating?
The WSIB reviews most employers under mandatory merit and experience rating programs. These
programs provide employers with the financial incentive to reduce injuries and illnesses and to
encourage workers' return to work. Employers are automatically reviewed under one or more of the
following programs.
Merit Adjusted Premium (MAP) Program
MAP applies to employers paying from $1,000 to $25,000 per year over a three-year period.
Employers may be entitled to a rebate up to 10 per cent by keeping their workplaces injury free. MAP
reduces premiums for employers who prevent injuries and improve health and safety, and increases
premiums for firms with poor injury experience.
New Experimental Experience Rating (NEER) Program
NEER applies to employers paying more than $25,000 per year in premiums and does business in at
least one non-construction rate group. Employers may be entitled to a rebate when claims costs for
the past year are lower than expected costs, or a surcharge when claims costs exceed expected
costs.
CAD-7 Program
CAD-7 applies to employers in the construction sector with annual premiums greater than $25,000.
Employers may be entitled to a rebate when claims costs and claim frequencies are lower than
expected, or a surcharge when claims costs and/or frequencies are higher than expected.
Fatal Claim Adjustment (FCA)
The WSIB will investigate a fatality that occurs at employers in NEER and CAD-7. If they determine
that the employer did not take sufficient steps to prevent the fatality, a premium increase may be
applied even if the employer was entitled to a rebate.
.
Office of the Chief Strategy Officer | Strategic Planning & Outcomes
Workplace Safety and Insurance Board
Commission de la sécurité professionnelle et de l’assurance contre les accidents du travail
Summary of Results
MoL Convictions due to Fatalities from
January 2009 to October 2014
ER
Program
ER
FCA
ER Impact ($)
Count
of FCA
Value of FCA
($)
Total ER Impact
Average ER
Impact
28
$3,247,725.51
14
$7,841,130.29
$11,088,855.80
$396,030.56
CAD7
25
$3,949,852.99
9
$142,880.19
$4,092,733.18
$163,709.33
Total
53
$7,197,578.50
23
$7,984,010.48
$15,181,588.98
$286,445.08
Count of
Employers
NEER
MoL Convictions due to Injuries from
January 2009 to October 2014
ER
Program
Count of
Employers
ER Impact ($)
Average ER
Impact ($)
NEER
$9,600,358.36
$77,422.24
CAD7
124
29
$4,839,577.28
$166,881.98
Total
153
$14,439,935.64
$94,378.66
Office of the Chief Strategy Officer |Strategic Planning & Outcomes
Workplace Safety and Insurance Board
Commission de la sécurité professionnelle et de l’assurance contre les accidents du travail