Workers’ Compensation Case Study
Echelon Australia’s client had been severely impacted by a change in business classification of one of their Victorian Workers’ Compensation policies. As a result, a significantly higher premium rate was applied to the client’s policy structure for two years, having a significant negative impact on the premium.
Echelon undertook an analysis of the policy structure in accordance with Victorian legislative guidelines. We identified that the client’s workplace had been assessed previously by the insurer and that the rate had been based on an assumption that the client operated one predominant business. This rate was applied across the whole site.
Echelon arranged an appeal on behalf of the client and conducted a site visit to assess the structure of the single workplace. From this site visit it was clear to the insurer that three separate and distinct businesses operated at the one site.
The appeal was successful and the policy was subsequently re-classified into three separate and distinct business activities, with the application of three separate premium rates aligned to each. The rectified policy structure resulted in the client receiving a refund of approximately $600,000 from the insurer.