What does "experience rating" encourage employers to do?

Experience rating encourages employers to prioritize safety and control hazards in the workplace by linking an employer's insurance premiums to their claims history. A positive claims history, characterized by fewer or less severe worker injuries, can lead to lower premiums. This financial incentive motivates employers to create safer work environments and implement effective safety programs to reduce the number and severity of workplace incidents. Consequently, by maintaining a focus on safety, employers can both protect their employees and save on insurance costs, emphasizing the importance of a proactive approach to workplace safety.

The other options do not align with the principle of experience rating, as they do not directly relate to safety improvements or risk management in the workplace.