In a previous blog post, we spoke about the first way that the industry you work in affects your WorkCover premium. In that post, I mentioned that there was a second way. That’s what we’ll be talking about in this post.
As a recap, there are three factors that drive your WorkCover premium:
• Your remuneration
• Your Industry Rate, and
• Your claims performance
The industry rate is the first way that your industry drives your premium. The second way is through your claims performance. Whether your business has $100,000 in claim costs or $1000 in claim costs, on its own, doesn’t really say much about your performance. $100,000 in claim costs in an abattoir with 500 employees might actually be relatively good performance. And $1000 in claim costs in a two person accountancy office might be relatively bad performance.
The word ‘relative’ is the important one here. Relative to what? Well, as you’ve probably guessed, relative to your industry. Or more specifically, relative to what would be expected in your industry for an employer your size.
Your claims performance is compared to your industry using the Industry Claim Cost Rate (ICCR). WorkSafe Victoria gazette the ICCRs each year along with the industry rates.
The ICCR uses the same period of claim costs and remuneration as your premium calculation does (the last 2.5 years of claim costs and the last 3 years of remuneration). The only difference is that it is based on the claim costs and remuneration for every workplace in that industry. That way, your specific business is compared to all other businesses in your industry.
The comparison is used to create the Employer Performance Rate (the EPR). But that’s for another blog post.
In the meantime, if you have any questions, get in touch.