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welcome to rate-setting 101 in the next few minutes well talk about rate setting calculations and how the numbers are crunched to establish manual insurance premiums for workers compensation in the state of Washington workers compensation is administered by the Department of Labor and industries workers compensation is a type of insurance that covers of business and its employees against liabilities due to workplace injuries so what if a worker gets injured in the line of employment workers compensation will pay to cover things like medical costs and partial wage replacement or time loss so lets talk about what goes in the rate setting and how premiums are established workers compensation insurance looks at the risk of a worker getting hurt and how severely the higher the risk in a job the more likely an injury will occur or injuries and costs or the premium for the insurance coverage using this information employers are assigned a risk class industries like construction health care