Changes to NSW WorkCover for Small Business

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Changes to NSW WorkCover for Small Business

Summary of changes

Following the announcement of a 7.5% premium reduction effective 30 June 2013 the new changes introduce many benefits, including making it easier to understand small employer premiums, less administration for small employers and savings for business, without losing the focus on the injured worker.
The table below outlines a summary of the changes:

1. Small employer definition has been expanded :

Includes all employers with an annual basic tariff premium less than or equal to $30,000 (previously $10,000).

2. Claims experience rating:

If an employer has an annualised basic tariff premium of less than or equal to $30,000 they will not be claims experience rated.

3. Automatic renewal :

When the current insurance period ends, small employer policies will be automatically renewed. Pre-renewal notices will be sent 4-6 weeks prior to the renewal date

4. Automatic alignment of renewal date :

If the current renewal date does not occur at the end of the month, the expiry date for the next term of insurance will be automatically aligned to month end.

5. No estimated wage declarations required :

At policy renewal estimated wages will no longer be required. A declaration of actual wages will be required at policy end.

6. Renewal premium :

The renewal for the 2013/2014 period will be based on the current year estimate. Moving forward the premium will be based on previously recorded actual wages, plus a determined adjustment factor, such as CPI. In the event that actual wages data for the prior term of insurance is not available, it will be determined using the previous year’s estimated wages, plus 40%

7. Timeframe to return actual wages declaration :

Extended to four months past expiry (previously two months). Declarations not returned within six months will be nil adjusted.

8. Premium Discount of 5%:

If the annual premium is paid in full by the due date, a 5% discount will be applied (previously 3%).

9. Employer Safety Incentive (ESI) 10% :

A 10% upfront discount calculated on basic tariff premium is automatically deducted from the renewal premium. This upfront discount is payable to WorkCover at policy period end if a claim is made and the injured worker is unable to return to work within four weeks of the date of injury.

10. Return to Work Incentive (RTWI) 10% :

This incentive is received for the period if all injured workers return to work within 13 weeks from date of injury.

Reference Source :

WorkCover Small Employer Package Underwriting Guide 2013

Action Plan :

VeriSure are Specialists Risk Advisors.

Our commitment to providing the very best Policy Terms and Conditions at the most competitive Premium together with our professional Claims Advocacy is paramount.

Contact us for an extensive Risk Assessment today.

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