Return On Industrial Insurance (ROII) Program

How R.O.I.I. Works
The process  begins when a company submits their application and enrollment fee. After approval by BIAW and L&I, they become an R.O.I.I. member for the upcoming plan year. Beginning July 1 and ending June 30 of the following year.

During the plan year, member copanies continue to remit their quarterly premiums directly to the Washington State Department of Labor and Industries. Participation in the R.O.I.I. program neither reduces nor increases a member's industrial insurance rates.

One year following the end of the plan year, L&I calculates the first of three refund adjustments. A second adjustment is calculated one year later, and a third and final adjustment one year after that.

If group premiums exceed losses for the plan year, a refund is distributed to the participants. If losses exceed premiums, members may be assessed additional premiums of up to 40% of their premium for the plan year.

In Terms of Dollars
Employers in Washington State pay industrial insurance premiums of about $2 per hour per construction site worker. With an average employee work year of 2,080 hours, that totals $4,160 per employee. That means, with R.O.I.I.'s average return rate of 25%, participation in our program can save companies an average of $1,040 per employee annually.

Acceptance Criteria*
Strict criteria for admission to the program is greatly responsible for BIAW's 25% average refund rate. Members are required to:

• Be a current member of a local building industry association that is affiliated with BIAW.
• Have a positive loss ratio with L&I (premiums have exceeded losses).
• Have a minimum of one full year of history (July through June) reporting industrial insurance hours to L&I.
• Report a majority of hours under at least one of the risk classifications approved for our group. "Primarily construction related" criteria is also considered. (Premiums paid by members during the plan year under all risk classifications are considered for refunds).
• Have an active industrial insurance account with L&I.
• Be current in all amounts owed to L&I. If under a payment agreement, all payments must be current.
• Must separately enroll all sub-accounts that are substantially the same nature of business. Failure to do so will result in denial by L&I for all related accounts.
  

*Acceptance criteria are subject to change.

Enrollment
Applications are accepted from February 1st trhough April 30th for each plan year beginning July 1st. Each R.O.I.I. plan year is independent, so members must reapply for participation each year. Quarterly enrollment allows cvompanies to participate in R.O.I.I. for the remaining quarters of a plan year already underway, and requires the same acceptance criteria as annual enrollment.

Enrollment Fees
The annual up front enrollment fee is $150 or 1.5% of your annula L&I premium, whichever is greater. The fee is refundable if, for any reason, your application is rejected. Quarterly enrollment fees are pro-rated, with a $150 minimum.

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