Be Ready for New Hearing Test Requirements
To help prevent hearing loss in the workplace, employers must provide hearing tests to workers who frequently use hearing protection to control noise that exceeds the exposure standard.
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New Return to Work Strategy
The National Return to Work Strategy 2020-2030 has been implemented by Safework Australia members to help workers Return to Work (RTW), or to stay at work while recovering from their work-related injury or illness. Embedding effective and practical RTW processes is critical within all-sized businesses.
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Zero Tolerance – Fraudster to Repay Compensation
In a time when a lot of businesses are still recovering from the pandemic, fraudulent claims have been on the rise. These behaviours threaten the integrity of workers compensation schemes, taking money and resources away from genuinely injured workers who depend on them for their livelihoods.
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Jail for Workers Compensation Fraudster
With workers compensation schemes/underwriters experiencing increasing challenges, costs and resulting need to increase workers compensation insurance premiums, a recent court decision represents ongoing focus on fraudulent workers compensation activities. A Victorian business owner has been sentenced to 22 months in prison for workers compensation fraud and is also required to repay $350,000 of illegal workers compensation payments.
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People Risks
Successfully managing business risks is more important than ever before. Businesses are faced with numerous different risks, yet anticipating and effectively managing your people risks are critical to building trust inside and outside of your business. Given people risks can have significant financial, reputational and legal implications, risk management efforts are crucial for businesses. What are the common people risks Australian businesses should be aware of and address?
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Why Workers Compensation Premiums Increase
Australian States & Territories have different workers’ compensation legislation & consequently, the method (or formula) used to calculate a workers’ compensation premium. Workers’ compensation insurance premiums are typically based on the business industry, annual wages & a range of other factors that could include claims frequency/costs, underwriting decisions, and various adjustments. The reason why a workers’ compensation premium increases, therefore depends on a variety of factors.
Workers’ compensation premiums in Australia can increase for various reasons. Workers’ compensation premium increases are often influenced by factors related to both the individual business & the broader workers’ compensation system.
Common reasons for premium increases include:
- Wage Increases: Premiums are often calculated based on the total wages paid to employees. If an employer’s payroll increases significantly, their workers’ compensation premiums will also rise accordingly
- Industry Risk: The nature of the industry in which the business operates plays a role in determining premiums. High-risk industries, such as formworking, scaffolding, construction or manufacturing, tend to have higher premiums due to the increased likelihood of workplace injuries
- Claim Frequency: If a business has a higher frequency of workers’ compensation claims, in some states/territories this can lead to increased premiums. A higher number of claims may indicate Work Health & Safety (WHS) issues in the workplace or insufficient safety measures, leading to more frequent injuries or illnesses among employees
- Claim Severity: The severity of the workers’ compensation claims can also impact premium costs. If a business experiences costly claims, such as serious injuries, long-term injuries/disabilities or fatalities, it can lead to higher workers’ compensation premiums
- Changes in Legislation: Changes in workers’ compensation laws, or regulations, can impact premiums, rates & formulae. Changes that increase/decrease benefits or expand/restrict coverage may lead to higher/lower workers’ compensation premiums
- Experience: In some Australian states/territories, workers’ compensation premiums are adjusted based on an experience modification factor. This experience modification factors can be influenced by an employer’s claims history & safety record. If a business’ claims experience is worse than the industry average, their premiums may increase.
- Insurer’s Pricing Decisions: Insurance companies periodically reassess their risk exposure and adjust premium rates accordingly. If an insurer faces higher overall claim costs, they might increase premiums across the board.
- Inflation and Medical Costs: General inflation and rising medical expenses can impact the cost of workers’ compensation claims, which may lead to premium increases for employers.
To successfully manage & control workers’ compensation premiums, businesses can focus on:
- improving workplace safety
- implementing risk management strategies
- promoting a culture of WHS among employees
Proactive measures to prevent workplace injuries & illnesses can help reduce the frequency (number) and severity of claims, ultimately leading to more stable or reduced premium costs over time.
ABILITY GROUP specialises in actively working with clients to identify workers’ compensation premium reduction strategies as well as their implementation to achieve sustainable workers’ compensation premiums.
Contact our workers’ compensation specialists for help in reducing your workers’ compensation premiums or for further information, please refer to below
Source: icare
Title: Calculating the cost of your workers insurance premium
Read Time: 5 minutes
Source: WorkCover Queensland
Title: Premium calculation
Read Time: 5 minutes
Source: ReturntoWorkSA
Title: Premium calculations
Read Time: 5 minutes
Source: WorkSafe Victoria
Title: Calculation your premium
Read Time: 5 minutes