In September, Labor & Industries (L&I) announced a proposed overall 4.9% increase in 2026 base rates for Washington’s industrial insurance risk classifications. Each year, L&I actuaries calculate rates for every risk class by analyzing five years of claim costs (by claim type) and hours worked to determine the expected costs for the upcoming year. Although the statewide increase is 4.9%, individual risk classes may see higher or lower changes depending on their loss experience.
What You Pay
Base rates are only one part of what determine your final premium. The actual rate you pay is driven by your company’s Experience Modification Factor (EMF).
EMFs are calculated by reviewing your company’s reported hours and claim costs over a three-year period (July 1, 2021, through June 30, 2024) to estimate your expected losses for the upcoming year.
- An EMF greater than 1.0 means you will pay more than the base rate.
- An EMF below 1.0 means you will pay less.
How to Reduce Your Rates in Future Years
There are proactive steps you can take now to lower your EMF and reduce future premiums:
- Build a strong safety program. Safety is the most proactive and effective way to improve workers’ compensation performance. Preventing injuries reduces overall costs and helps you maximize refunds if you participate in a Retrospective Rating (Retro) program.
- Return employees to work as quickly as medically appropriate. Time away from work increases claim costs and impacts both you and your employees. Effective return-to-work strategies lower claim expenses, reduce future premiums, and increase Retro refunds.
- Use available financial incentives. Programs like Stay at Work and the Claim-Free Discount can significantly reduce your costs.
Get More Information
You can read L&I’s announcement and look up your 2026 risk class rates. If you would like more information on the estimated premium you will be paying, or want guidance on how to reduce your rates in future years, please contact us.