What is the primary goal of incentivizing employers through Experience Rating?

The primary goal of incentivizing employers through Experience Rating is to reduce workplace accidents and claims costs. Experience Rating is a method used in workers' compensation insurance that adjusts an employer's premium based on their claims history. When an employer has a lower number of claims or less severe accidents, they benefit from a lower premium. This creates a financial incentive for employers to maintain safe working conditions, implement effective safety programs, and focus on reducing injuries and illnesses. Consequently, when the overall number of workplace accidents diminishes, the costs associated with claims also decrease, benefiting both employers and employees. This system encourages a proactive approach to workplace safety, fostering a healthier work environment.