2 minute read
Demystifying workplace industry classification
Workplace Industry Classifications (WIC) are a grouping system used in conjunction with other factors such as total remuneration and claims costs to determine WorkCover compulsory insurance premiums.
There are hundreds of classifications for different industries, and they can vary from state to state.
The classification rates consider the risk and claims experience of the different industries. These classifications are applied to a workers compensation policy based on the predominant business activity being undertaken.
Without a thorough knowledge of workers compensation legislation and guidelines it can often be difficult to identify the most appropriate classification for your business.
Why is it important to have the right WIC?
For an organisation operating across multiple states or territories, understanding the classifications and associated legislation is critical. Despite the same work being undertaken nationally, the classification can differ from state to state.
Having the correct WIC may minimise workers compensation premiums.
Modern organisations are regularly developing new services and changing the way they operate.
The pandemic proves a good case study, with many businesses transforming to offer new core services, which may lead to changes in their predominant business activity.
Workplace Industry Classifications and labour hire
The level of complexity when it comes to classifications increases for labour hire organisations, particularly if operating across multiple jurisdictions.
Not only do classification rules differ between states, the WIC of the host employer and the specific job that each labour hire employee is undertaking must also be considered through the classification process.
Support to get it right
Many factors go into determining your workers compensation premium, including total remuneration and claim performance.
A customised approach is essential when reviewing an organisation’s Workplace Industry Classification.
As an employer or labour hire agency, understanding your premium should form part of an overall workers compensation management strategy.
The benefit of working with an expert is the knowledge they offer when it comes to improving outcomes through premium management, claims management, OHS and ensuring legal obligations are met.
Insurance House’s workers compensation team, Safe Scope, are the experts in premium management and workplace classifications, contact Mark Farrugia to discuss today.
Mark Farrugia
0437 917 315
