Previously we advised that the NSW Government predicted the latest WorkCover legislation changes would reduce workers compensation premiums. For some businesses, these changes however have actually resulted in higher 2014/15 renewal premiums.
The late re-issuance of NSW WorkCover Insurance Premium Order (IPO) has meant some businesses are yet to receive their renewal premiums and invoicing and as such, if their workers compensation renewal has increased. An unexpected cost can have a dramatic impact on a business’ cash flow and in context of other changes there could be steps taken to reduce costs.
INCREASED WORKERS COMPENSATION RENEWAL?
Due to the late changes many of the premiums and invoicing has been delayed therefore some clients may not know if they have any increased costs as yet.
Summary of the changes delivered to businesses are;
- 414 industries across NSW will benefit from an average premium rate reduction of 5%
- 343 industries across NSW will receive a discount of more than 5%
- Small employer pre-set premiums previously issued will be affected by the rate changes
- Premium processing for adjustment and renewal for policies due on or after 30 June may not undergo processing until after 7 July
- A review of all Industry Claims Cost Rates (ICCR) for both 2013-2014 hindsight premiums and 2014-2015 premiums
As we approach the end of July many of the June renewals will start to be processed by insurers, if your or your client’s premium has increased and you would like to know more, please contact us.
We will review your premium to ensure you are not paying too much.