Claim-Free Discount Examples (Class 6403 Convenience grocery store, no gas)

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 6403 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 - 2,933.19 12.00% 2,581.21
Excess - 2,072.25 7.00% 1,927.19
Total - 5,005.44 - 4,508.40

Computed Experience Factor 4,508.40 (Credible Estimate) divided by
5,005.44 (Expected Loss)
equals 0.9007
Claim-Free Experience Factor     0.9000
Prior Experience Factor     0.9000
Final Experience Factor     0.9000

Example 2

One compensable claim at $5,000
  (a) (b) (c) (d)
  Actual Losses Expected Losses Credibility Weight Credible Estimate
Primary 5,000 2,933.19 12.00% 3,181.21
Excess - 2.072.25 7.00% 1,927.19
Total 5,000 5,005.44 - 5,108.40

Computed Experience Factor 5,108.40 (Credible Estimate) divided by
5,005.44 (Expected Loss)
equals 1.0206
Claim-Free Experience Factor     0.9000
Prior Experience Factor     0.9000
Final Experience Factor     1.0206

Example 3

One compensable claim at $40,000
  (a) (b) (c) (d)
  Actual Losses Expected Losses Credibility Weight Credible Estimate
Primary 28,662.64 2,933.19 12.00% 6,020.72
Excess 11,337.36 2,072.25 7.00% 2,720.81
Total 40,000 5,005.44 - 8,741.53

Computed Experience Factor 8,741.53 (Credible Estimate) divided by
5,005.44 (Expected Loss)
equals 1.7464
Claim-Free Experience Factor     0.9000
Prior Experience Factor     0.9000
Final Experience Factor     1.1250

See the Claim-Free Discount page for more information.

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

End of main content, page footer follows.

Access Washington official state portal

© Washington State Dept. of Labor & Industries. Use of this site is subject to the laws of the state of Washington.