With fall comes flannel, pumpkin spice, and your first look at 2027 industrial insurance rates.
Labor & Industries (L&I) is expected to announce proposed base rates for Washington’s industrial insurance risk classifications in late September or early October. Final rates are typically adopted later in the fall and take effect on January 1, 2027. L&I calculates rates for each risk classification based on expected claim costs and hours worked statewide.
What Determines the Rate You Pay?
While base rates vary by industry and risk classification, your actual premium is heavily influenced by your company’s Experience Modification Rate (EMR). For 2027 rates, L&I will evaluate your reported hours and claim costs from July 1, 2022, through June 30, 2025 to estimate your future workers’ compensation losses and determine the premium needed to cover those costs.
What Can You Do Now to Lower Future Rates?
There are several steps employers can take today to improve their future EMR and reduce workers’ compensation costs:
- Build a strong safety program. Preventing injuries is the most effective way to improve workers’ compensation performance. Fewer injuries mean lower claim costs, lower premiums, and greater opportunities for Retro refunds.
- Return injured employees to work as quickly as medically appropriate. Effective return-to-work programs help control claim costs, reduce future premiums, and support better outcomes for employees.
- Take advantage of available financial incentives. Programs such as Stay at Work and the Claim-Free Discount can help offset workers’ compensation costs and improve overall program performance.
Learn More.
If you’d like help understanding your projected premiums or developing strategies to lower your workers’ compensation costs, contact one of our experts at ernwest.com.