Workers Compensation insurance is compulsory for all employers in every state and territory in Australia and can be the second largest cost to a business. A business in Brisbane contacted us to undertake a professional diagnostic review of their Workers Compensation policy.
The Goals:
– To confirm whether the client was classified correctly on their Workers Compensation policy based on their primary business activities.
– Identify any premium savings on their Workers Compensation policy from the review.
– Provide peace of mind.
The Solutions:
– Obtained the client’s Workers Compensation premium calculation to identify the client’s current industry classification
– Requested information from the client focusing on the primary business activities
– Relied upon the description and primary activities of the ANSZIC codes from the Australian Bureau Statistics.
– The correct ANZSIC code suitable for the client’s policy was lodged to WorkCover Queensland.
– WorkCover Queensland declined our request to change the industry classification for the client.
– The matter was disputed with the Workers Compensation Regulator.
The Results:
– The Workers Compensation Regulator reviewed our submission to Work Cover Queensland.
– The Workers Compensation Regulator agreed with our submission to change the industry classification.
– The premium saving was $166,000.
This client is a company that transports waste and recyclable products.
After seeing the case studies we’ve published, the client contacted us and took up our offer of an obligation free professional diagnostic review to assess if any premium savings can be generated for their company.
In any business, it is protocol to annually review costs and set budgets, therefore any company costs saving is giving them the opportunity to invest in other areas of their enterprise, create more employment opportunities and increase overall profitability.
The objective for this client was to ensure their industry classification was appropriate to the primary business activities conducted by this client.
We obtained the relevant information from the client to determine if their current industry classification was correct or if another industry classification was more appropriate. After reviewing the client’s primary business activities in detail, it was identified that they were incorrectly classified. Therefore, we lodged the request to change their industry classification to WorkCover Queensland along with the supporting documentation.
Despite our submission and supporting documentation to demonstrate the change to the client’s industry classification, WorkCover Queensland declined this request. However, we were able to lodge an appeal with the Workers Compensation Regulator.
The Workers Compensation Regulator reviewed our submission and supporting documentation and confirmed that based on the client’s primary business activities, the industry classification we identified was appropriate.
The savings for this client as a result (including reversing the previous 3 policy years) was $166,000 plus an average of $60,000 every year.
