What is the purpose of the Wisconsin Contractor’s Premium Adjustment Program (WCPAP)?
The Wisconsin Contractor’s Premium Adjustment Program is designed to reduce an employer’s worker’s compensation premium by way of a premium credit based upon the employer’s average hourly wage level. In an attempt to balance the premium difference between high and low wage paying employers in the construction or contracting trades, this program grants a policy credit based on the average hourly wage paid by employers. Because higher wages are paid to more experienced workers, the cost for worker’s compensation coverage is higher for those employers paying a higher than average hourly wage. The employer paying the higher wage is then at a disadvantage when bidding against the lower paying competition for contracts. The WCPAP attempts to correct this inequity. The higher the wage paid, the higher the credit, which allows for a more equitable premium charge for employers in the same industry.
