Loss Prevention and Recovery
Reduce workers' compensation insurance premiums through workplace safety improvements
An alternate cost-effective approach to premium management called Loss Prevention and Recovery is available for large employers in NSW. The product is an alternative premium model for large employers in NSW. The new approach helps employers to gain control of workers' compensation insurance premium costs by improving workplace safety.
What is loss prevention?
Loss prevention is the practice of managing risk and insurance premiums through measures to reduce loss from theft, damage or injury by large organisations. By putting in place workplace risk management policies and safety practices, employers can mitigate internal costs and control the impact of work related injuries on insurance premiums.
The insurance product is designed to meet the needs of large employers. It was developed in collaboration with policyholders to provide a way to take control of workplace risks and reduce premiums as a result of measures being put in place.
What is different about the new approach?
Two main changes are that the application and renewal process has been simplified and there is now an alternative to paying a security deposit.
Who needs loss prevention and recovery insurance?
All large employers in NSW can benefit from loss prevention and recovery (LPR) insurance. Loss prevention insurance is particularly important for wholesale, retail, manufacturing, and construction businesses. In NSW there are legislative requirements for employers to protect their workforce, no matter what the size, through workers compensation insurance.
Why large employers?
The loss prevention and recovery model is best suited to large employers because they have the capacity and resources necessary to manage and improve systems for loss prevention and recovery at work.
What counts as a large employer?
An employer is eligible for this Loss Prevention and Recovery product if their basic tariff
premium exceeds $500,000 for a 12 month period of insurance (this can be pro-rated for shorter periods of insurance), or they are a member of a group of which at least one member's basic tariff premium exceeds $500,000.
What is the benefit of the LPR method?
The LPR model provides strong incentives to improve workplace safety and outcomes for injured workers by offering more immediate financial rewards for active loss prevention and recovery at work compared to the standard model of premium calculation.
Under this method, the premiums payable by large employers more closely reflect their individual experience and success in loss prevention and recovery at work.
Claims are capped at a ‚Äòlarge claim limit' which is chosen by the employer. Included in the premium calculations are:
- All payments including wage benefits, medical and hospital expenses and service provider costs including legal investigations
- Recoveries from other parties
- Estimated costs of future payments from claims
Claims costs don't include:
- Anticipated recoveries from other parties
- Recess claims
- Interpreter expenses
- Claims expenses
- Journey claims
- New employment assistance payments
For a full list of inclusions and options speak to an expert qualified broker at Transwest today for advice.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Sandra Connolly.