Occupational health and safety: a well-chosen mutual can save you a lot of money
Since their creation in 1998, prevention mutuals have become essential tools for employers wishing to better control their occupational health and safety (OHS) expenditure. These groupings of companies enable prevention efforts to be pooled, while accessing more advantageous pricing.
As the deadline for notifying your intention to change mutual insurance companies in 2026 approaches – a date that normally varies between April 30 and June 30, depending on the company – many employers are currently re-evaluating their membership. Are you ready?
Today, there are over a hundred prevention mutuals in Quebec, managed by specialized firms. According to the latest data from the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST), in 2023, these mutuals represented 28,298 employer members. This represents a payroll of more than $42 billion, up 9.5% on the previous year.
Over 68% of mutuals have at least 50 employers.
Why join a mutual insurance company?
To join a mutual, a company must meet three conditions:
-
- be an employer,
- be in good standing with CNESST,
- be contributed either at the unit rate (reserved for companies with low payroll – this rate may vary from year to year), or at the personalized rate (calculated according to the company’s OHS experience).
The advantages of pooling are numerous:
1. Reduce your OHS contributions : mutuals aim to achieve savings on annual contributions to the CNESST through increased prevention and proper management of occupational injuries, as well as collective claims management and overall OHS performance superior to that of the classification unit.
2. Stabilize your contribution rate: in the event of a claim by a company, the entire mutual assumes the impact. This acts as protection against sudden increases in contribution rates.
3. Benefit from specialized support: good managers offer turnkey services: prevention audits, coaching, administrative support, CNESST representation, targeted training, etc.
4. Structuring OHS management: membership requires the implementation of a rigorous prevention program, encouraging the company to structure its practices. This helps reduce accidents and their indirect costs (work stoppages, lower productivity, staff turnover, etc.).
Beware: not all mutual insurance companies are created equal!
A mutual’s performance depends on the quality of its membership, its track record, its governance and the services it offers. While some prevention mutuals offer savings of up to 60% on CNESST contributions, others can cost up to 40% more than the standard unit rate.
These significant differences underline the importance of choosing the right mutual insurance company.
The determining criteria
To select the mutual insurance plan best suited to its needs, an employer must consider several key factors:
- Historical performance Historical performance: CNESST calculates the contribution rate on the basis of multi-year reference periods.
- Total payroll: A mutual with a small payroll runs a greater risk of major rate variations, as the limited number of members means that the impact of a serious accident cannot be effectively cushioned.
- Member diversity A varied composition of classification units generally favors better overall performance.
- Services offered and associated fees Management fees: for similar services, management fees can vary considerably from one mutual to another. It’s essential to find out which services are included in the annual fee.
- Manager’s accessibility and reputation The manager’s availability and recognized expertise in OHS are important criteria.
At Demers Beaulne, we put quality before quantity. All our managers are CRHA/CRIA certified and take on half as many files as the Quebec market average. The result? Truly personalized support, tailored to the reality of each customer. In figures, that works out at around 100 cases per manager, compared with an average of 175 to 200 elsewhere. An approach that makes all the difference!
2025: a context that accentuates the importance of the right choice
It is advisable to re-evaluate your membership of a prevention mutual every year, to ensure that savings are maximized and services continue to meet your company’s needs.
This year, this assessment is more important than ever. Although the average CNESST contribution rate remains stable at $1.48 per $100 of payroll – the first stability after several years of decline – the differences between different sectors could become more pronounced. Some classification units will see their rates increase by 15%, while others will experience equivalent decreases.
Moreover, the reduction in the rate for fixed costs (from 19.9% to 16.8%) makes the variable portion – influenced by OHS performance – even more decisive.
As a result, differences in performance between mutual insurers should have an even greater impact on employers’ personalized pricing. For 2025, the history of the mutual between 2020 and 2023 will be fully taken into account in calculating the rate. An underperforming mutual will penalize more, while an above-average mutual may offer stability, or even lasting savings.
How to change your mutual insurance company in Quebec
Changing mutual insurance companies means respecting the termination deadlines stipulated in the contract. Most managers require a notice of non-renewal at least 90 days before the end of the agreement, generally before June 30. The list of employers forming a mutual must be submitted to the CNESST before October 1 of the current year, with a view to joining on the following January 1.
You should also be aware that the impact of a change of mutual insurance company on the premium will not be immediate, but will be felt gradually over four years.
An essential checklist for employers
Before joining or renewing your membership, make sure you have checked the following:
Mutual performance:
-
- Is the performance index below 0.80?
- Have you compared with other similar mutuals?
Group composition:
-
- Does the mutual group a sufficient number of employers?
- Can the collective payroll absorb major claims?
- Is there a diversity of sectors or classification units?
Real savings promised:
-
- Has the manager provided you with a documented savings comparison?
Services offered:
-
- Prevention audit, training, legal and medical support included?
- Frequency of preventionist visits specified?
- Services tailored to your specific needs?
Fees and contractual terms:
-
- Are fees competitive for the services offered?
- Are there any hidden fees or service limits (defense funds, etc.)?
- What are the cancellation terms (notice period, penalties)?
More questions? We have the answer.
What is a prevention mutual (and its impact on OHS)?
Quebec companies are facing growing challenges in the field of occupational health and safety. The prevention approach is now organized around an innovative collaborative model: the voluntary grouping of employers who share the same accident prevention and occupational injury reduction objectives.
This collective approach ensures optimum management of OHS issues. Members benefit from shared expertise, a personalized action plan and regular environmental inspections. Risk analysis and sound specialist advice guide senior management towards concrete solutions.
The concept is based on a sector-based approach: companies in the same sector join forces to create a safer working environment. This synergy generates substantial savings thanks to optimized claims management and a smoother return to work for employees.
What effect does a prevention mutual group have on the cnesst contribution rate?
Membership of a prevention mutual group generates a gradual improvement in the CNESST contribution rate. The first financial results are seen from the second year after joining, with an optimal impact reached around the sixth year.
Savings vary according to collective performance: the best-performing mutuals offer reductions of up to 40-60% on the initial rate, while the average saving is around 16%. This variation is explained by the pooling of payroll and benefits for all member employers.
Rigorous preventive monitoring remains essential to maintain these benefits. A large corporate member’s personalized rate will reflect the group’s overall performance, creating a positive ripple effect across all contributions.
