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Experience-rated employers
Employers whose premium rates are determined by the claims costs record from their business

BWC uses reported payroll and applies a manual classification expected loss rate to determine an employer's expected losses. Employers with expected losses of $2,000 or more are entered into the experience-rating plan.

Experience information (also called an experience period) is a statistical snapshot of each employer's claims costs for the oldest four years of the most recent five-year period.

Each June, we provide an online experience exhibit so state-fund employers can view their experience-rated information, such as:

  • All lost-time claims within their experience period, including compensation awards, medical payments and claim reserves. Claim reserves are monies we expect to pay out in the future, not what is paid out already.
  • The base rate(s) for each NCCI manual classification within their business.
  • Any experience modification, which is the percentage of credit or debit we apply to the base rate to determine the employer's premium. It's also called an experience modifier  ̶  a measure of expected future claims costs. For employers who have lower expected claims costs than their classification average, we apply an experience modification credit to their premium. Conversely, employers with expected claims costs higher than average would receive an experience modification debit.
    • For private employers, the maximum credit in policy year 2019 is 53 percent.
    • For public employers, the maximum credit in policy year 2019 is 65 percent.

To view an experience exhibit for a policy, refer to Experience period data.