Claim Cost History Transfer Policy 23-607 | Effective Date: April 6, 2017


The purpose of this policy is to communicate how WorkSafeNB determines whether to transfer or share (affiliate) an employer’s cost experience when a change in their business activities results in a new employer account.


This policy applies to all employers who have a change in business activities resulting in a new employer account. 


1.0 General  

WorkSafeNB allocates claim costs to the appropriate employer account using Policy 21-300 Allocation of Claim Costs. Once allocated, the costs are used to determine WorkSafeNB’s basic rates and the employer’s experience rate.

When an employer’s business activities change, resulting in a new employer account, WorkSafeNB determines if the cost experience of the original employer should be:

  • Transferred to the new employer account; or
  • Shared (affiliated) with the new employer account.

WorkSafeNB makes this determination when employers:

  • Have a nominal change in ownership;
  • Have a material change in ownership;
  • Sell shares;
  • Sell assets;
  • Have a partial transfer of business activity;
  • Change the name of the company; or
  • Enter receivership or file for bankruptcy protection.

2.0 Nominal Change in Ownership 

When there is a nominal change in ownership, WorkSafeNB determines that the new owner(s) have continued the business activities and must assume the previous cost experience.

WorkSafeNB considers the following situations to be nominal changes in ownership:

  • Owners of a business incorporate a new company for the purpose of carrying on the existing activities;
  • A change in the composition of a partnership; or
  • A change in a family business with control retained by the current owner’s family members.

For the purpose of this policy, the current owner’s family members include:

  • Spouse, son, daughter;
  • Father, mother, stepfather, stepmother;
  • Brother, sister, half-brother, half-sister;
  • Grandfather, grandmother, grandson, granddaughter, stepson, stepdaughter.
  • Niece(s), nephew(s); and/or
  • In-laws.

3.0 Material Change in Ownership 

WorkSafeNB opens a new employer account and does not transfer previous cost experience when there is:

  • A material change in ownership of a proprietorship or a partnership; and
  • No continuity or relationship between the previous owners and the new owners.

4.0 Sale of Shares 

In situations involving the sale or transfer of controlling shares of an incorporated company, the new shareholders (owners) have purchased all assets and liabilities of the previous business and will assume its cost experience.

5.0 Sale of Assets 

WorkSafeNB opens a new employer account and does not transfer cost experience when:

  • Specific assets of a business are sold to another party for the purpose of starting a new business activity; and
  • There is no continuity or relationship between the seller and the buyer.

6.0 Partial Transfer of Business Activity 

When the partial transfer of business activity to an existing employer (affiliated) occurs, the cost experience of both accounts is used to determine the rate applicable to both accounts. The two employer accounts also share the same net assessment rate.

Employers are considered to be affiliated, even though they are separately registered when:

  • There is a degree of common ownership; and
  • They are operating businesses that are contributing to the production of common goods/services.

Employers may also be considered affiliated when:

  • There is a degree of common ownership; and
  • The businesses share employees or there is an indication of employee transfers from one company to the other.

For more information on when WorkSafeNB determines employers to be affiliated, see Policy 23-300 Employer Classification.

7.0 Change of Name

WorkSafeNB maintains the employer’s cost experience when the business name changes, but the business activities remain the same.

8.0 Receivership or Bankruptcy 

When a receiver or trustee is appointed to manage the business activities of an employer, WorkSafeNB opens a new account and does not transfer the previous claim cost experience.

Affiliated accounts – employers are classified and rated on the basis of the industry in which they are operating. Rates established for any one industry reflect the combined risks of all occupations found in that particular industry. If an employer’s business activities are supportive or ancillary to another employer’s business, such as sales, administration, delivery, etc., or they are involved in the same industry classification and there is a degree of common ownership, then both firms will receive the same classification, even though they are separately registered.

Appeals Tribunal – means the Workers’ Compensation Appeals Tribunal established under the WHSCC & WCAT Act.

Experience rate – is the adjustment applied to the basic rate to reflect employers’ cost experience.

Material change in ownership – the change in ownership of a proprietorship or a partnership by more than fifty percent (50%).

Nominal change in ownership – the change in ownership of a proprietorship or a partnership by fifty percent (50%) or less.

WorkSafeNB – means the Workplace Health, Safety and Compensation Commission or "the Commission" as defined by the WHSCC & WCAT Act.

E-News Sign-up