Workers compensation insurance premiums to stay steady in 2021
Most Washington businesses will not see the price of workers compensation increase in 2021.
For the first time in two decades, Washington workers’ compensation rates have dropped or stayed steady for four years in a row. The state Department of Labor & Industries (L&I) announced this week that there will be no increase for the average premium rate in 2021.
“We’ve managed the workers’ compensation system closely, improving services, and reducing disability. That’s why we have the funds for existing claims and contingency reserves to help during tough times, like today,” said L&I Director Joel Sacks.
“Because we know how tough the pandemic has been on businesses and workers, we’re keeping rates steady in 2021 even though our projections for next year’s claims indicate rate increases are needed.”
However, while there will be no overall rate change, individual rate employers will see changes in their rates depending on their recent history of claims.
For example, L&I will increase workers’ compensation rates for Amazon fulfillment centers, deeming them more hazardous than other types of warehouses.
It has boosted the premium rates by 15% starting Jan. 1, potentially costing the company millions more a year, The Seattle Times reported.
Previously, Amazon fulfillment centers were grouped with other kinds of warehouses when calculating premium rates, which are in part based on the number of injuries within industry-specific risk classes. Amazon’s new rates will be higher than those of 260 other industries — including mechanized logging and law enforcement.
Some grocery distributors and recycling facilities argued that higher injury rates at Amazon’s 24 centers across the state were driving up premiums for all warehouses, which increased 18% this year.
Workers’ comp claims filed by employees at Amazon’s warehouses increased nearly threefold between 2014 and 2018, according to the agency’s data, while claims from other warehouses have been falling.
For more information log on to www.Lni.wa.gov/rates.
This story was originally published December 2, 2020 at 1:28 PM with the headline "Workers compensation insurance premiums to stay steady in 2021."
