| PERIOD: |
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| CHALLENGE: |
- To obtain workers compensation policy coverage and competitive terms for a three year construction project;
- Total payroll $200M+ as company decided to hire employees directly;
- It’s only prior Australian experience with direct hire had incurred enormous workers compensation costs;
- The company had budgeted for a premium rate of 5% of payroll; Indicative tariff rate for construction projects in NT was 6.7%. and their prior experience suggested 10% was likely.
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| ACTION: |
- In marketing documentation and discussions:
- the companies global commitment to safety was emphasised;
- Injury rate data for other non-Aust projects was provided;
- Project specific safety and workers comp management plans, including “wind down” strategies, were provided;
- Competitive terms were sought from three insurers
- Meetings were arranged between prospective insurers and senior company representatives.
- Negotiations on terms and ways to improve them occurred
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| RESULTS: |
- Experience rated policy terms were deemed most appropriate
- Terms achieved allowed for a minimum premium rate of 2.3% with a maximum of 5.8%
- Actual rate achieved was 3.0%
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