Workers compensation in Australia is highly jurisdictional with each state and territory having its own framework for administering their particular scheme.
It is this fragmented arrangement that can make navigating the complexities of workers compensation for a business with a national footprint particularly challenging.
However despite this there are fundamental concepts that are applicable to all states and territories when it comes to controlling and minimising workers compensation premiums.
Namely, a business that controls their frequency/severity of injury rates and has systems to consistently coordinate return to work when injuries do occur is well positioned premium wise.
For such employers however there are alternative workers compensation premium arrangements that should be considered that may better reward their strong performance with lower premiums.
These alternative premium arrangements usually apply to larger businesses and include (although not limited to):
In most instances these premium arrangements can deliver premium savings and/or cash flow efficiencies to a business however each arrangement also comes with its own set of pros and cons.
For example, the burning cost model can both reward (good claims cost control) or penalise (poor claims cost control) an employer.
Similarly, the loss prevention recovery model provides a NSW business with a ‘clean slate’ but increasing adjustment factors could drive premium increases if claims are not managed well in the arrangement.
Gallagher Workplace Risk has the expertise with these arrangements to assess the appropriateness of a particular alternative model for a particular business to qualify whether it will drive sustainable premium savings or efficiencies.
In the current climate especially, our consultants are well positioned to explore the appropriateness of whether a non-conventional premium arrangement is suitable for your business.
Please CONTACT our team for more information.