The average base rate Washington businesses pay for workers’ compensation insurance will increase by 2 percent in 2016, according to the department of Labor & Industries (L&I). Washington businesses and employees pay workers’ compensation premiums to help cover the cost of providing wage replacement and disability benefits, as well as medical treatment of work-related injuries and illnesses. The money also goes toward building reserves to protect the workers’ compensation funds against unexpected costs.
L&I uses wage inflation as a benchmark to help determine workers’ comp rates for the coming year. The department said the 2016 premium increase would have actually been higher if not for significant cost saving by the agency over the last year. As it stands, the 2 percent increase for 2016 comes out to a little more than an additional 1 cent per hour worked.
Since 2013, workers’ comp rate increases have been between 0.8 percent and 2.7 percent.
The new rates take effect January 1. For more information, visit www.Lni.wa.gov/Rates.