Employers pay WCB Insurance for 4 main reasons.
- They care about their employees.
- It provides financial and medical benefits to workers injured on the job.
- They don’t want to get sued.
- It’s the law.
And yet still many employers cringe at the amount they spend yearly on WCB premiums.
But how can we reduce this cost?
The Workers Compensation Board (WCB) Insurance was founded in 1914 at the height of the manufacturing boom in Ontario, Canada, and soon expanded across the country. The manufacturing industry looks a lot different today than it did 100+ years ago.
As we settle into the 4th Industrial Revolution or “Industry 4.0”, manufacturers around the globe are transforming their processes with robots, vision systems and digital integration, and with these improvements they are unlocking enhanced productivity and safety.
This shift has significant implications for workers’ compensation (WCB) premiums.
Let’s explore how the adoption of these technologies affects insurance costs and workplace safety.
The Intersection of Robotics and Workers’ Compensation
As companies integrate more automated systems and robots into their operations, they’re seeing a notable impact on their workers’ compensation costs. Here’s why:
Reduced Injury Risks
Integrating automation and robotics in your facility can significantly decrease workplace injuries by taking over dangerous or repetitive tasks resulting in fewer repetitive strain injuries. In 2023, of all injuries registered with WCB, 64% of all injuries were sprain/strain in nature.
Robots excel at handling repetitive tasks, reducing the risk of musculoskeletal disorders among human workers.
This reduction in accidents directly translates to fewer workers’ compensation claims, driving lower premiums.
Lower Risk Profiles
The injury rate is 1.38 per 100/year within the manufacturing industry alone.
Insurance companies are taking notice of the safety benefits that robotics bring to the workplace.
Businesses implementing these technologies may enjoy better insurance pricing due to their improved risk profiles. Automated systems can operate in dangerous settings, limiting human exposure to potential harm and hazardous environments.
Potential for Significant Cost Savings
With fewer injuries and claims, businesses can experience a decrease in their Experience Modification Rate (EMR), a key factor in calculating workers’ compensation premiums. Over time, this can lead to substantial savings on insurance costs.
Smaller Payroll = Smaller Premiums
The Worker’s Compensation Board sets premiums for manufacturers at $0.80 to $10.65 per $100 of payroll. This adds up quick. Even a small business with a modest payroll of $100k will find that this is a hefty expense every payday.
What are the first steps?
Firstly, conduct a thorough risk assessment before implementing the new tech. Industrial Transformation does not mean overhauling your whole assembly line.
Secondly, simple Automation Safety Technologies such as machine guarding, safe motions and hazardous point sensors will have an immediate and profound effect on the health and safety of your operators, resulting in lower premiums.
What is a Collaborative Robot or “Cobot”?
You do not have to go “all in” a robot or feel like you’re eliminating someone’s job, try a cobot.
Unlike traditional robots, cobots can adapt to various tasks, enhancing productivity by performing repetitive or hazardous jobs while ensuring worker safety through advanced sensors and force limitations.
These cobots are designed to work alongside humans, are easy to program and are flexible to changing production needs.
Conclusion
The integration of automation and robotics in the workplace has the potential to significantly impact workers’ compensation premiums.
By reducing injury risks and improving overall workplace safety, businesses can potentially lower their insurance costs.
As we move further into 2025 and beyond, staying informed about the latest developments in automation and their impact on workers’ compensation will be crucial for businesses looking to optimize their insurance costs while ensuring a safe work environment.
Frequently Asked Questions:
Is WCB Mandatory in Canada?
All businesses in mandatory industries are required to register for WCB coverage. These typically include sectors like agriculture, forestry, manufacturing, construction, transportation, retail trade, service industries, and public administration
Who is covered by WCB?
Coverage is mandatory for manufacturing employers with three or more workers at one time in the above-mentioned industries. All employees are covered within the organisation, regardless of role.
Are manufacturing plants required to have WCB insurance?
Yes, across Canada, a manufacturing plant would be required to have WCB insurance. However, specific requirements may vary slightly by province, so it’s always best to check with the local WCB office for precise details applicable to a particular location.
Ready to Lower WCB Premiums While Boosting Productivity?
Enginuity specializes in designing scalable automation and robotics solutions that enhance workplace safety, reduce injury risks, and improve operational efficiency. Let us help you adopt Industry 4.0 technologies to minimize costs and maximize quality.
