Big News for WSIB rates! | CFIB
Great news for business owners in Ontario: The WSIB will cut 2020 premiums by an average of 17%! This means that $607-million can stay in the province’s businesses, instead of going to the government.
It’s the result of more than 20 years of work by CFIB and our members, starting with business owners like you sitting down with WSIB Chair Elizabeth Witmer at roundtables across the province. Thanks to you and the strength of 42,000 CFIB members, the WSIB immediately moved on sweeping reforms that led to a combined 47% (on average) rate reduction for 2019 and 2020.
Why are rates going down again?
For a long time, the WSIB had an unfunded liability – they didn’t have enough money to cover all potential, future claims. This led to higher rates. Once the WSIB eliminated its unfunded liability in September 2018, it was able to decrease rates by an average of almost 30% in 2019 and an additional 17% in 2020.
Will rates increase again?
Some businesses might see future rate increases. However, they wouldn’t take effect until 2021, and the WSIB will phase-in any initial potential increase over a few years.
The WSIB’s new rate framework kicks in on January 1, 2020. The previous 155 rate groups were reorganized into 34 classes/subclasses. The rate you pay under the new system will depend on your business’s claims experience compared to your entire class/subclass, similar to how auto insurance works. The better your safety record, the lower your rate could be.
How do I find out my new class/subclass?
Please keep an eye on your mailbox! The WSIB sent information to every business that pays WSIB premiums. Each customized statement includes your new rate class, your rate, your projected rate, and details on the WSIB’s transition approach.
Is there anything I can do to lower my rates?
The new system places a greater emphasis on your individual claims experience. This means that improving your safety record could lead to rebates or rate reductions. The WSIB will share more details when they launch their new Health and Safety Excellence program in November.