In workers comp insurance, Sliding Scale Dividend Plans are established to return a portion of the premium to the policy holder if the losses are better than expected and a dividend is declared. This is a type of Loss-Sensitive Policy.

In a sliding scale plan, the size of the dividend slides up or down according to the loss experience (incurred losses/premium paid). This amount is returned to the insured business after the policy expires.

Sliding Scale Dividends are very state-specific. Dividends are not guaranteed and are paid based on the ratio the final audited premium has to the total incurred losses of the insured for the policy period.