Last week 2022/23 Victorian WorkCover Premium Notices were issued through WorkSafe’s Online Employer Services. Like many employers you may have been surprised by an increase in your premium.
WorkCover premiums, like so many other costs of doing business, have risen in many states. Along with past performance, there are variety of factors that are used to calculate your premium. It is important to check your Premium Notice carefully to ensure the accuracy of these factors, so that you don’t pay more than necessary.
What to look for on your Premium Notice
The first two pages of your Premium Notice will detail your premium amount and payment options. The page after this (Your Notice of Premium) is the one to check carefully. There are three important factors and classifications listed here that determine your premium.
The WorkCover Industry Classification is a risk based assessment based on the work your business conducts – the higher the risk associated with the work, the higher the industry rate. For instance, heavy and civil engineering construction is inherently more dangerous than office work, so the industry rate is higher.
Ensure that the classification is appropriate for your business. If it is not, contact your Agent asap.
Your annual renumeration is another key factor used to calculate your premium. The higher your renumeration, the higher your premium. If you have not provided WorkSafe with an estimate for the period, it will be based on your previous year’s renumeration plus 4.75%.
If the renumeration estimate on your Notice of Premium is incorrect, you should update it immediately through WorkSafe’s Online Employer Services. An adjusted renewal notice should them be issued shortly there after.
Your company's historical WorkCover claims and the costs have a direct impact on your future premiums. For larger businesses, each dollar of claim costs can cost up to 4 times as much in premium costs, for a number of years. But for smaller businesses, the impact of past performance isn’t as significant.
The Notice of Premium shows your performance rating and how it compares to you industry average. The rating is based on Your Claims Statement, which can be accessed through WorkSafe’s Employers Online Service.
How you can reduce the expense of WorkCover premiums
Pay early and pay in full
Discounts are provided to employers who pay their premiums early.
If you pay by:
• 15 August 2021 you’ll get a 5% discount.
• 1 October 2021 you’ll get a 3% discount.
You also have the option to pay your premium quarterly. To take advantage of the early payment discounts, many businesses choose to finance their WorkCover premiums – which also helps them to maintain their cashflow by making payments monthly.
Review your current WorkCover claims management processes
While it won’t impact your current premium, improving your WorkCover claims management processes and reducing the number of claims you have in the future, will help to reduce your future premiums.
WorkCover claims management is a highly specialised area and effective management requires an intimate understanding of the different schemes. For many businesses it makes far more sense to outsource this function to a specialist provider, like Risk Strategies. Not only does it ensure that your claims are effectively and efficiently managed, it can save you money on a number of different fronts. This article provides more information about the benefits of outsourcing Workers Compensation managemen
If you’d like to talk to a WorkCover specialist about your Premium Notice or improving your claims management processes, we’re here to help – just call us on 03 9863 8408 or email firstname.lastname@example.org