WorkCover Premiums are less than 4 months away – Are they Budgeted for Yet?
Jillian L Hamilton
CoSafe | Advisor | Governance | Risk Management Sustainability, ESG, GRC, Safety | Financial Approach to NFR | National & International Legal Comparator | Shareholder/Stakeholder Reputation & Activist Advisor | Futurist
Readiness Test
- Do you have an estimate of your Bill for next FY & the adjustment for this FY?
- Do you know what determines your Premium cost?
- Do you know your claims trends?
- Do you know about current and future legal actions?
If you have answered “no” to any of these questions, you could be facing a premium that could seriously impact on the ongoing viability of your business.
Unless you are managing your workers compensation claims actively, and monitoring the costs of those claims, it is likely that you may not be prepared for any increases in your premium.
How are they Costed?
Your Premium is determined by a number of factors:
- Wages:
The 2016/17 premium will be reflect your actual wages paid vs estimated. You may have more to pay or you could have a refund due (which is often applied to your next years premium).
2. Claims Costs:
With more than $1.5m in wages your bill will be determined by your claims costs regular claims (3 years for statutory) & common law claims (2 years) relating to your wages and the industry rate.
3. Industry Rate:
The Industry Premium Rate for your WIC Code (WorkCover Industry classification) is set by Industry Averages and the Insurer.
Don’t wait until August to find out your premium.
Consider modelling your claims costs, current and estimated wages for 2017-18, so you’re fully prepared for the premium notice when it arrives (would be nice to put this number in the budget – right?...).
Manage Damage can conduct a “Workcover Sanity Review” to assess how your claims are trending, and developing strategies to control claims costs within your business.
Contact us on 1800 2 MANAGE / 1800 26 26 24 or [email protected]