This is an example and may not reflect the actual numbers associated with your business.

These examples show how one time-loss claim can raise workers' compensation rates for an employer in class 0510 that is currently under the claim-free discount.

The rates are based on the 2010 workers' compensation rates per hour worked.

Example 1

No compensable claims (claim free)
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	-	20,214.08	55.00%	9,096.34
Excess	-	22,252.48	8.00%	20,472.28
Total	-	42,466.56	-	29,568.62

Computed Experience Factor	29,568.62 (Credible Estimate) divided by 42,466.56 (Expected Losses)	equals	0.6963
Claim-Free Experience Factor			0.6200
Prior Experience Factor			0.6200
Final Experience Factor			0.6200

Example 2

One compensable claim at $5,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	5,000.00	20,214.08	55.00%	11,846.34
Excess	-	22,252.48	8.00%	20,472.28
Total	5,000.00	42,466.56	-	32,318.62

Computed Experience Factor	32,318.62 (Credible Estimate) divided by 42,466.56 (Expected Losses)	equals	0.7610
Claim-Free Experience Factor			0.6200
Prior Experience Factor			0.6200
Final Experience Factor			0.7610

Example 3

One compensable claim at $40,000
	(a)	(b)	(c)	(d)
	Actual Losses	Expected Losses	Credibility Weight	Credible Estimate
Primary	28,662.64	20,214.08	55.00%	24,860.79
Excess	11,337.36	22,252.48	8.00%	21,379.27
Total	40,000.00	42,466.56	-	46,240.06

Computed Experience Factor	46,240.06 (Credible Estimate) divided by 42,466.56 (Expected Losses)	equals	1.0889
Claim-Free Experience Factor			0.6200
Prior Experience Factor			0.6200
Final Experience Factor			0.7750

See the Claim-Free Discount page for more information.

Call your Account Manager or local L&I office for more rate information.