Prompt Injury Reporting and Its Role in Reducing Workers’ Compensation Premiums

Reducing workers’ compensation premiums can be a key priority for businesses who are looking to manage their costs and ensure that they maintain a safe and productive work environment. In Australia, workers’ compensation insurance is a requirement that all employers must provide, and is designed to protect employees a work-related injury or illness. Although workers’ compensation premiums are in most cases determined by various standardised factors, there are ways that business can reduce these costs. By adopting proactive injury management and early intervention measures, business can help keep their premiums to a minimum whilst also looking after the wellbeing of their employees.

Understanding Workers’ Compensation Premiums 

In Australia, workers’ compensation is a mandatory form of insurance required for all employers. It is designed to protect employees who experience a work-related injury or illness by covering their medical expenses and loss of wages. It is the employer’s responsibility to pay worker’s compensation premiums, which are in most cases determined based on their previous claims, the industry that they work in and the number of wages that are paid.

How to reduce your Workers’ compensation premiums

There are various ways that an employer can help with reducing workers’ compensation premiums and the cost of their claims are by:

• Mitigate or prevent injury and illnesses within the workplace
• Facilitating a safe and swift return to work

A business can do this by:

• Implementing early intervention programs such as an Injury Reporting Centre
• Train staff to understand and recognise the signs of potential injuries and illnesses
• Supporting employees who are injured or suffer from an illness in the workplace
• Engage and implement effective return to work programs either through internal processes or by engaging with an outsourced return to work coordinator
• Equip staff with relevant knowledge on WHS and workplace policies and procedures
• Adopt robust work health and safety measures within the business to ensure the safety of all workers

The Benefits of Timely Injury Reporting

An Injury Reporting Centre or a workplace injury triage hotline offers immediate support and helps guide injured workers toward the appropriate care.

The benefits of an injury reporting hotline are:

• Promptly reporting injuries as they happen is key to helping reduce workers’ compensation premiums. Our Injury Reporting Centre (IRC) includes a comprehensive range of tools. By using our Incident Reporting Platform and Safety Compliance Reporting features, we help ensure your legal obligations are met—while also supporting potential cost savings.
• Organisations can keep their workers’ compensation costs in check and avoid unnecessary disruptions to productivity.
• Team members aren’t left to take on extra workloads or adapt to reduced team capacity.
• The injured worker stays connected to the workplace, which supports both their mental wellbeing and physical recovery.
• Employers can arrange immediate medical support, which is often critical in stopping an injury from worsening and may prevent time away from work altogether
• It helps determine the most suitable medical treatment early, ensuring the injury is managed properly from the start.
• Fast reporting leads to quicker access to care, reducing the risk of complications and helping to prevent similar incidents in the future.

Best practices for effective injury reporting

• Any PCBU (person conducting a business), or in a leadership or management position has a duty of care to report any occurrence of a workplace injury and if it is deemed serious it must also be notified to the relevant regulator
• The notification of the workplace injury must be done so in the swiftest manner possible either via telephone, online injury platforms (e.g. IRC) or by email
• A written incident report must include all details of the incident that occurred, including:
  • When and where the injury occurred
  • Date of injury
  • Cause of injury
  • Any other supporting factors
• Implementing a clear and efficient communication process to ensure the accurate and timely reporting of injuries.
• All records of workplace incidents must be retained for a minimum of 5 years from the date of notification. Failure to comply will result in penalties.

How injury reporting can reduce workers’ compensation premiums

Promptly reporting workplace injuries allows for a coordinated and proactive approach to treatment and return-to-work planning. This strategy not only helps in managing the claim more efficiently but also has the potential to lower the overall cost, which may lead to reduced insurance premiums for employers. Research indicates that the best way to minimise premiums is through early intervention, effective injury management, and keeping accurate records. By implementing rehabilitation programs that support early return-to-work efforts and maintaining a focus on workplace safety, employers can help manage costs and foster a safer, more productive workplace.