Despite your best efforts to optimize the health and safety of your workplace, accidents can happen that lead to workers’ compensation claims. Even though WorkSafeBC covers the medical expenses and wages lost, you are ultimately paying for these costs through your premiums. Each claim contributes to your experience rating which is used by WorkSafeBC to calculate your premiums. As with any kind of insurance, the more claims you accumulate, the more you will be charged.
One way that employers can limit these increases is by requesting cost relief. The primary purpose of cost relief is to avoid penalizing employers for circumstances that were out of their control. If cost relief is granted, rather than applying claims costs to employers’ experience rating, they are instead applied to a reserve fund or to the overall industry rating.
Most commonly, claims involving pre-existing conditions or disabilities will be considered for cost relief. However, the employer must produce medical documentation to prove that the conditions or disabilities were present prior to the accident and that they contributed to increased costs.
Claims involving “second injuries” will also usually be considered. “Second injuries” refer to those that result from treatment of the initial injury that was the subject of the claim or where the initial injury led to another.
Circumstances for cost relief vary between jurisdictions. In British Columbia, claims resulting from disasters that affect entire industries will also be taken into consideration.
If you wish to do so, file a request for cost relief with your case manager along with your reason for doing so in writing. Ensure that you have reviewed the claim file and collected any relevant supporting documentation. In your request, identify any materials that support your reasoning.
Contact an Acera Insurance advisor for more insurance and risk-related information and resources.