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What a blown out claim really costs
Your workers compensation premium is, roughly, your rateable wages multiplied by your premium rate. A claim that blows out pushes that rate up, and the loaded rate doesn't reset at the next renewal. It follows you for years.
Most businesses feel a bad claim twice: once in the direct costs while it runs, and again, usually harder, at every renewal after. This calculator shows the second hit. Put in your own numbers. If you don't know your rates, your broker can tell you in one phone call.
Not sure? Your broker can tell you, or drag it to see the sensitivity.
- Premium before
- $25,000per year
- Premium after
- $50,000per year
Extra premium over 4 years
$100,000
That's on top of the claim's direct costs: the excess, wages cover, and anything you pay outside the claim. Getting a stuck claim moving before renewal is the single biggest lever on this number.
Illustrative only. Premium rates, and how claims experience affects them, vary by state scheme and insurer, and your broker can tell you your actual rates. This tool makes no prediction about any scheme.
Have a claim doing this to your renewal? Tell us where it's stuck and we'll tell you plainly whether we can help. Call 1300 477 662 or get in touch.
Not sure if your claim is the problem? Take the two minute Stuck Claim Check →
Why the rate moves, in plain English
Insurers price workers compensation on experience. A business with clean claims history pays close to the base rate for its industry. A business carrying a blown out claim gets loaded, and because most schemes look back over several years of claims experience, one bad claim keeps costing you long after it's closed. The exact mechanics differ between state schemes and insurers, which is why this page shows the arithmetic and leaves your actual rates to you and your broker.
The part you can control is the claim itself. A claim that resolves in three months barely registers at renewal. The same injury left to drift for a year, with the worker disengaged, the plan abandoned and the insurer silent, becomes the number that defines your premium for the next several years. That's the case for acting on a stuck claim now rather than at renewal, when the loading has already landed.
Frequently asked questions
How is a workers comp premium calculated?
In broad terms, rateable wages multiplied by a premium rate. The rate reflects your industry and your claims experience, and the detail varies by state scheme and insurer.
How long does a claim affect my premium?
Most schemes rate on several years of claims experience, so a significant claim typically influences your premium for around three to five renewals. Your broker can tell you how your scheme applies it.
Can IMA reduce my premium?
Not directly. Premiums are set by insurers and schemes. What we do is get stuck claims resolved, which is the biggest input a business controls in its claims experience.