The
Experience Rating Plan recognizes differences among employers
within the same business classification. Although the
classification system subdivides employers according to
product, process, operation, kind and character of business,
etc. we recognize that employers can differ in a variety
of ways: how the operation is performed, the manner in
which the product is manufactured, and the implementation
and operation of safety programs, to name a few. These
factors will all affect the propensity for an injury to
occur. The Experience Rating Plan provides a measurable
way to reflect these factors. The two major benefits of
experience rating are that it tailors the cost of insurance
and provides an incentive for loss prevention.
To be eligible for experience rating, an Indiana employer must reach $2500 in annual average premium or $5,000 in one year. In 2008, Indiana had just over 28,000 employers that qualified for intrastate experience rating. For the 10th consecutive year, we produced 100% of Indiana’s experience ratings 90 days prior to effective date, surpassing our goal of 95%.
