Experience rating program is to reduce or increase an employer’s premium rate by comparing each

employer’s accident experience with the accident experience of other employers in the same industry
classification.

The general goals of experience rating programs are to:

1. distribute assessments fairly among employers, based on a historical record of their claim costs

2. encourage employers to provide safer working environments by linking their assessment costs
directly to the number of claims against their account

The purpose of the Experience Rating Program is that by improving safety performance, you can reduce
costs to the workers compensation system, and pay lower rates. The Experience Rating Program offers a
financial incentive to create a safer workplace. At the same time, the program allows the costs of
workers compensation to be shared fairly among same industry employers.

To participate in an experience rating program, employers must meet certain qualifications, such as:

1. 1. the employer must have contributed to the workers’ compensation fund for the past three
years
2. 2. the average assessment must be at least a minimum amount set annually, which varies by
jurisdiction.

Suggestion for the safety incentive program -

 Build a reward component into the safety program.

 Recognize and thank employees for participating in safety training. - Conduct quarterly safety
quizzes
 Use spot recognition rewards.
 Celebrate success
 Pick a program theme and display as posters, banners. Post in employee newsletter, employee
website
 Program communication must be continuous, fun, visible, and colorful.