Workers compensation insurance plays an important role in providing security and confidence to both workers and employers. By ensuring that workers are looked after in the event of an accident, and the employer is free from the significant stress, liability, and potential costs, everyone is happier.
Unfortunately, to make workers compensation insurance premiums work, there can’t be a one-size fits all solution, because all businesses aren’t one size or the same. They must be distinguished in their own way, where possible.
In order to create fairly-costed premiums to suit the different industries, scales, services, and environments of today’s market, there are plenty of complicated rules, and not necessarily a lot of clarity. Getting workcover advice on industry classification from expert consultants such as Jayrose Group can save all parties from immense emotional strain and fatigue – not to mention company resources.
One aspect that can mire the uninitiated when it comes to understanding workers compensation is your industry classification and how it accurately reflects your business.
The factors that impact an organization’s classification are:
- The predominant activity of your business
- What they sell
- What is involved in delivering what they sell, and whether one activity dominates the business
- What tools, materials, and methods are used
- The value of the business and contributing costs
- Whether the goods involved are owned or not
- Whether the goods and services are provided internally
- Whether you’re supplying a business that is associated with your own business
Each of these factors contribute to an assessment of risk within the workplace, the likelihood of injury or sickness, and the cost that such an event would implicate for you.
If you’re confident enough to answer accurately to the above questions without skipping a beat, you’re part of the way there. Getting this part wrong though can create exorbitant and unnecessary costs, or mean that you’re not actually covered for the risks that you’re worried about.
It can become seriously convoluted, and the financial premium differences at stake can reach the millions, depending on where you land. For many organisations, it’s more cost-effective and a lot safer to delegate the task to an experienced specialist workers compensation claims consultant.
We can provide Annual Premiums Assessment that guarantee accuracy, full obligation protection, and even result in refunds. If you’d like to know about how we can support you with finding your Workcover minimum premium, and our extensive insurance premiums management services, contact us here.
