Under current NSW legislation, there are several incentives, discounts and other adjustments being offered to employers in order to create safer, healthier workplace and help businesses lower the cost of their Workers Compensation Insurance premiums.

What are the incentives being offered?

Apprentice Incentive Scheme

If you employ an apprentice, you are entitled to a reduced premium based on the wages paid to your apprentice. The incentive amount is based on what details you provide in your Wage Declaration Form.

To be eligible, you must:

> Have a valid workers compensation policy

> Have entered into a Training Services NSW approved contract with the apprentice, who must be identified in the training contract.

Avoid Claim Excess

Should one of your employees sustain an injury at work, you may avoid paying an excess in your claims by reporting the incident to your insurer or insurance agent early - within 48 hours of you becoming aware of the injury.

The excess amount is equal to the first week of weekly compensation.

Premium Discounts if paid in full

Employers are entitled to a discount on their premium if payment of your annual premium is made in full (on or before the due date).

For small employers, the current discount is 5%. For experience-rated employers, the current discount is 3%. These discount rates are subject to change.

Employer Safety Incentive

All employers (small and experience-rated) with a standard workers compensation policy will get a 7.5% Employer Safety Incentive premium discount at the start of each policy period in the hope it will encourage employers to invest the savings in making their workplace safer.

Return to Work (RTW) Incentive

A RTW incentive discount (5,10 or 15 per cent) will be applied, for experienced rated employers, to the cost of each claim that is made against your workers compensation policy, with a sustainable RTW outcome within 52 weeks of the date the injury was sustained. Higher discounts apply to shorter RTW outcomes.

Performance Discount

Experience-rated employers with claims performance better than the Scheme are eligible to receive a performance discount at the end of the policy year.

All small employers with policies commencing on or after 30 June 2019 are eligible to receive a discount.

Note: The performance discount depends on the NSW workers compensation Scheme’s financial performance and is subject to change.

Employer Safety Reward (ESR)

An ESR discount of 5% will be applied at the end of the insurance period for experience-rated employers who have no incurred any claims that affect their premium, in the last four consecutive policy periods.

How Coverforce can help

Our experienced Coverforce Workplace Services (CWS) team can assist FIA member businesses in embedding safe working processes and with the identification of risks and hazards in your workplace. Contact them directly on (02) 9376 7979 to find out more.

A Coverforce Insurance Broker can provide your business with sound risk advice and quality insurance cover. Ask what you can do to protect your business against loss arising from workplace injuries. For personalised insurance advice contact Julie Gidaro on (02) 9376 7895.

Be sure to mention your FIA member status.

References

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.