Aren’t premiums just a “tax” we pay to at the rate that they decide?
With the ever-increasing cost of living in Australia, as well as the difficult economic environment experienced by businesses in NSW, companies can ill afford to pay excessive and exorbitant Workers Compensation premiums.
Unfortunately, that is the situation facing many businesses in NSW, with premiums soaring so high that many businesses would be better off to self insure their liabilities.
For most entities, that option is not on the cards, so where does that leave the rest of us?
There are two key areas in Workers Compensation that businesses can “manage” to try and keep premiums to a minimum.
Classifications and Calculation of Premiums
The WorkCover Industry Classification (WIC) is applied to a business. The WIC is associated with a premium rate that forms the basis of your premium. Incorrect or inaccurate WIC rates could mean your premium is being paid at a higher rate than required.
Classification errors can be as simple as an Insurer misunderstanding the core functions of a business, or as difficult as applying multiple classifications to a single policy. A review of your classification could result in a reduction in your premium”.
Claims and Insurer Management
No employer sets out for their workers to get injured, but unfortunately, it is a fact that injuries do happen. Injuries incurred not only have a financial impact on your workers’ compensation premium but can also have a significant impact on a business’s operations, productivity and culture.
Effectively and efficiently returning injured workers to work post-injury, as well as ensuring only compensable claims are accepted by the Insurer, are the keys to keeping the cost of claims down. One of the main challenges is the lack of assistance, communication and time afforded by Insurers, leaving Employers feeling as if there is no alternative solution.
We encourage organisations to develop strategies and a positive relationship with their Insurer and if they are not happy with the service, have the courage to raise the issues and get them attended too. If yours still not satisfied have the courage to find another insurer.
Businesses that are able to effectively manage their policy, claims and Insurer, give themselves the best chance to maintain lower premiums. If your business is one of the many experiencing high premiums, difficulties with managing claims, or issues with your current Insurer, please contact Kylie Dowell for an introduction to so someone who can help.