The price of workers’ compensation insurance in Washington state will likely drop in 2019 following a proposal last week by the Washington state Department of Labor & Industries to decrease the average premium employers pay for the coverage by 5%.

If approved, the rate decrease would be the largest drop since 2007. The proposal would reduce the amount Washington workers and employers pay in premiums, collectively, by $135 million. Employers would pay an average of about $58 less a year per employee for workers’ compensation coverage; employees would pay about $6 less a year for their share of the cost.

Decreases in work-related injuries, along with L&I initiatives to improve outcomes for injured workers and reduce costs, have made the system healthier and are contributing to the proposed decrease, according to L&I Director Joel Sacks.

Sacks attributed the reduction to a big drop in injuries at work in Washington state since 2012, along with the state “... doing a better job helping injured workers heal and return to work,” he said. “That’s good for workers and employers, and helps us lower the cost of workers’ compensation coverage.”

Each fall, L&I determines the proposed rate for the following year by looking closely at several factors, including expected workers’ compensation payouts, the size of the contingency reserve, wage inflation and other financial indicators.

The public will have an opportunity to provide input about the rate proposal before a final decision is made in December.