WCB insurance protects you and your employees in the event of a workplace injury or illness. Workers compensation insurance covers wages while your worker recovers, pays for extended healthcare benefits and protects you from lawsuits.
WCB premiums are based on a combination of the risk of incurring claims costs and the value of what is insured. We define risk as the potential cost of future workplace injuries (based on the costs of past claims) and determine value using the assessable payroll of your workforce.
Premiums and Risk
WCB premiums are based on risk, just like your home or vehicle insurance:
- If your workplace’s risk (potential injury costs) is higher than other employers, you will pay higher premiums.
- We assess your risk based on your past claims costs or experience with us. If you are a new customer, we assess your risk based on the past claims costs of other companies with similar business activities. We put your business in a group of similar businesses called an industry classification.
- Workers compensation is a blend of collective and individual liability. This means your premium is based on a combination of the risk of potential injury costs at your workplace and the risk at workplaces with similar business activities.
- There are steps you can take to reduce your risk and potentially reduce your premium.
Premiums and Rates
Your WCB rate is multiplied by every $100 of your payroll to determine your annual premium.
How the WCB Sets Premiums and Rates
All employer’s WCB rates are set based on a mechanism we call a rate model. The rate model balances collective liability and individual liability in order to:
- Promote and enhance workplace safety and health;
- Promote effective workplace disability management programs;
- Allocate the costs of the compensation system among employers in a fair manner;
- Balance rate stability with rate responsiveness; and
- Maintain the financial integrity of the workers compensation system.
What's Changing About How We Set Your Rate?
In Manitoba, the rate model used to calculate employers' individual rates had not been reviewed in many years. As a result of both an internal and external review, employers were asked to provide their feedback about what changes, if any, they'd like to see.
Because of this process, the WCB began introducing changes to the rate model to improve the fairness of WCB rates for employers of all sizes. This process began in 2016 and will continue through 2020.
Your 2018 Rate Letter Can Tell You a Lot.
Every November, we send rate letters to our customers to let them know their WCB rate for the upcoming year. This helps customers estimate their premiums and prepare for their payments.
Did Your Rate Change in 2018? This May Be Why.
If your rate changed in 2018, there may be a number of reasons why. Changes to the WCB average rate, changes to how we calculate rates or your own claims experience can be factors in any rate change you experienced.
How You Can Reduce Your Premium
Your rate and your payroll are the factors used to determine your WCB premium. Unless your annual payroll changes significantly, the rate you pay is the factor you can influence to reduce your premium. You rate will likely increase or decrease based on the cost and number of injuries at your business. You can manage your WCB rate and premium by:
- Putting in place a safety and health program to reduce injuries;
- Putting in place a return to work or disability management program to reduce the length of time employees are off work after an injury; and
- Getting involved in your industry’s safety program to reduce injuries in your classification group.
These programs can have many other benefits for your business, such as increasing productivity, improving morale and retaining a skilled workforce. Learn more:
More Information about Rates and Premiums