General trucking operations in Alberta will see a slight decrease in Workers Compensation Board (WBC) premiums, even though average industry rates will increase, the Alberta Motor Transport Association (AMTA) reports.
The general trucking rates for 2022 will be set at $4.35 per $100 of earnings, down 0.68% from the $4.38 paid in 2021.
In contrast, the average industry rate increases 3 cents to $1.17 — rather than the $1.42 that would be needed to cover forecasted claims costs for 2022.
“WCB will absorb the additional costs from its accident fund, to cover $265 million in employer premiums,” AMTA says.
Specialized trucking operations will pay $2.71 per $100 of earnings in 2022, up 1.88% from the $2.66 in 2021. Garbage collection and disposal businesses, meanwhile, will see 2022 rates of $2.86 per $100 of earnings, up 1.42% from the $2.82 paid in 2021.
“WCB utilizes a complex formula to set your companies individual insurance premiums based on these rates. Depending on the unique circumstances of your business, you may be charged additional premiums, up to 60% on your experience rating, and an additional poor performance surcharge of up to 200%. Alternatively, you may receive Partnership in Injury Reduction [PIR] discounts of up to 20% for a total max discount of 60%,” AMTA notes.
One company, for example, saved $90,000 in premiums over three years on top of increased productivity, by actively managing claims and introducing safety programs, the association reports. Another business paid $32,000 per year in premiums because of poor performance. But it was able to eliminate a poor performance surcharge and secure a refund for the previous year by seeking cost relief on several claims and appealing a group claim.
- An original version of this article was corrected to properly reflect premium adjustments and Partnership in Injury Reduction discounts.
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