5 Simple and Practical Ways to Reduce WorkCover Premiums

If you're an Australian employer looking to reduce your WorkCover costs, the good news is: it’s possible — and easier than you might think. Many small and medium-sized businesses unknowingly pay more than they need to due to avoidable claim costs, delayed actions, or lack of systems. The key is being proactive.

Here are five clear, actionable steps you can take today to reduce your WorkCover premiums and better manage injury-related costs.

1. Report Workplace Injuries Promptly

Why it matters:
Delays in reporting injuries can result in longer claim durations, higher treatment costs, and even premium penalties.

Practical steps:

• Ensure all staff know how and when to report injuries.

• Nominate one person (e.g. HR or a manager) to lodge WorkCover claims quickly.

• Set up an internal policy: injuries must be reported to your insurer within 24–48 hours.

• Keep an injury register to track all incidents, even minor ones.

✅ Faster reporting leads to faster recovery — and fewer lost workdays.

2. Offer Suitable Duties Early

Why it matters:
The longer an injured employee is off work completely, the higher the claim cost. Offering light or modified duties shows the insurer you're managing the claim actively — which often leads to reduced premium impact.

Practical steps:

• Have a list of potential light duties ready (e.g. admin work, stocktaking, customer service).

• Work with the employee’s doctor or rehab provider to match tasks to capacity.

• Gradually increase duties as the worker recovers.

• Document a return-to-work plan with clear milestones.

✅ An engaged worker recovers faster, and your business keeps running smoothly.

3. Review Your Premium Calculations Regularly

Why it matters:
Your premium is based on your wages and claims history — and errors in either can cost you thousands. Many employers don’t realise that claim cost forecasts (not just payouts) impact their premium.

Practical steps:

• Review your annual WorkCover premium notice carefully.

• Check for misclassified wages or incorrect claims listed.

• Request a copy of your experience rating or performance summary from your insurer.

• Consider engaging an independent WorkCover consultant to audit past and current claims.

✅ A 15-minute review could reveal overpayments or avoidable future increases.

4. Invest in Injury Prevention and Training

Why it matters:
Prevention is the most effective way to reduce WorkCover costs — no claim means no premium impact.

Practical steps:

• Conduct regular safety walk-throughs and hazard assessments.

• Provide manual handling or injury prevention training.

• Keep records of safety improvements — this shows your insurer you’re risk-aware.

• Encourage early reporting of near misses to prevent more serious incidents.

✅ A safer workplace saves money, boosts morale, and reduces downtime.

5. Have a Clear Return-to-Work (RTW) Procedure

Why it matters:
Unstructured return-to-work can delay recovery and drive up claim costs. Having a simple, clear process means you can act quickly and confidently when an injury occurs.

Practical steps:

• Develop an RTW policy and make sure managers know how to use it.

• Communicate openly with injured workers from day one.

• Engage rehab providers or allied health where needed.

• Follow up weekly and adjust duties based on recovery progress.

✅ Having a plan avoids guesswork, reduces claim duration, and keeps your business compliant.

Final Thoughts

Managing WorkCover doesn’t have to be reactive or expensive. With a few simple systems, early communication, and proactive steps, you can reduce premiums, improve recovery outcomes, and support your team — without sacrificing productivity.

Need Help Reducing WorkCover Costs?

At Proactive Injury Solutions, we help employers across Australia review claims, cut unnecessary costs, and build better injury management systems. We’re independent, employer-focused, and results-driven — whether you’ve had a recent claim or just want to future-proof your business.

👉 Book a free consult today and discover practical ways to lower your premiums and support your team.
Let’s work together to protect your people and your bottom line.