Employers - Five step guide to manage workers compensation costs

There are practical steps employers can take to help manage workers compensation costs and create safer, healthier workplaces.

While premiums are calculated using a range of factors, employers who focus on prevention, early intervention and effective return to work practices may reduce the impact of workplace injuries and improve premium outcomes over time.

Note: These actions may help manage premium costs and improve workplace outcomes, but do not guarantee a premium reduction.

Prevent workplace injuries before they happen

Preventing workplace injuries and illnesses is one of the most effective ways to reduce workers compensation claims and their associated cost.

SafeWork NSW offers free advisory visits with a local Inspector to support employers creating a safe workplace. Employers should also take steps to prevent workplace injuries and illness by:

• identifying and managing workplace hazards and risks
• developing and improving workplace health and safety systems
• providing appropriate training, supervision and consultation with workers
• identifying and managing psychosocial risks
• reviewing workplace hazards regularly and implementing safety improvements, including through available SafeWork NSW support programs and rebates such as the SafeWork small business rebate.

Preventing workplace injuries and illnesses can help employers manage workers compensation costs and support better premium outcomes over time.

Keep your policy information up to date and access available incentives

Accurate workers compensation policy information helps ensure premiums are calculated correctly and may help employers access available premium incentives, and supports a fair and sustainable workers compensation scheme.

Employers should take the following steps to manage workers compensation premiums and access available premium incentives:

• provide accurate wage estimates (not required at renewal for small businesses)
• submit actual wage declarations on time
• ensure eligible apprentices are identified in wage declarations
• identify and apply for eligible premium incentives and rewards.

Potential incentives

Apprentice Incentive Scheme

Eligible employers may receive a premium reduction based on the wages paid to apprentices. This can help reduce workers compensation premium costs while supporting skills development in your business.

Safe Employer Reward

Eligible employers insured with icare with strong claims performance and a history of meeting wage declaration requirements may receive a premium discount.

Prepare for injury or illness in the workplace

When a worker is injured, having clear return to work arrangements can help them recover sooner and stay connected to the workplace.

To support effective recovery and return to work, employers should:

• maintain and implement an effective return to work program
• appoint and support a return to work coordinator
• identify and offer suitable work
• develop a written recover at work plan tailored to your worker when they are recovering through work.

Proactive implementation of return to work programs can have a significant impact on the costs of premiums.

Act early when a worker is injured

Early intervention is one of the most effective ways to support recovery and return to work. The earlier employers become involved in supporting recovery, the greater the opportunity to achieve positive outcomes for workers and businesses.

Employers should take steps to support recovery and return to work by:

• contacting the worker soon after an injury occurs
• notifying their insurer of a workplace injury within 48 hours of becoming aware of it
• making early contact with the treating doctor, where appropriate
• identifying suitable work opportunities
• addressing barriers to recovery before they become more complex
• seeking assistance when additional support is needed.

Access support available to employers

SIRA and insurers fund a range of services that can help employers support recovery at work and overcome barriers to an injured worker's return to work. Programs that cover costs or offer incentive payments to host employers can be used individually or in combination, depending on eligibility.

This may include:

• approved workplace rehabilitation services
• specialised services such as workplace facilitated discussion
• SIRA funded programs to support recovery at work, including equipment and modifications.

Using available support services early can assist workers to recover at work and may help reduce the duration and cost of claims.

Work with your insurer to support effective claims management

Employers play an important role in helping insurers manage claims and support worker recovery.

Employers should take the following steps to support effective claims management and recovery at work by:

• reporting injuries to the insurer within 48 hours of becoming aware of them
• providing accurate and timely information and responding promptly to insurer requests
• maintaining communication with workers, insurers and treating practitioners
• participating in return to work planning and discussions
• working with the support team to address barriers to recovery and return to work.

Strong collaboration between employers, workers, insurers and treatment providers can support faster recovery and better claim outcomes. Effective claims management can help reduce the impact of claims on business operations and may contribute to improved premium outcomes over time.

If you are insured with icare you may have a choice of the company who will manage your workers compensation claims on behalf of icare. These are known as Claims Service Providers.