Which type of employer is not required to participate in the premium assessment process?

• A. Small business employers
• B. Self-insured employers
• C. Federally regulated employers
• D. Municipal employers

Answer: (B)

Premium assessment is the process used by workers’ compensation programs to calculate what employers must pay in premiums based on payroll, job risk class, and past claims. Most employers participate in this rate-based system so premiums align with risk and payroll volume.

Self-insured employers are different: they are approved to fund their own workers’ compensation costs rather than paying premiums through the standard rate schedule. They still face strict financial and reporting requirements and are overseen by the workers’ compensation board, but they do not go through the typical premium assessment process. This is why they are not required to participate in that process.

Federally regulated employers operate under a federal program with its own premium structure, while municipal and small business employers generally fall under provincial/territorial programs and participate in their standard premium assessments.