The experience factor is the number that indicates how this company's claims
experience compares with the rest of that industry. It's used to raise or lower
the premium rate they pay to cover workers' compensation claims costs.
L&I calculates an experience factor by comparing a company's accident costs
to the average costs of other companies in the same risk classification. An
experience factor greater than 1.0 indicates a company has had
higher-than-average claim cost; lower than 1.0 shows lower-than-average claim
cost. New businesses usually start out with a factor of 1.0 until they are