Industry Classification & Rates

Industry Classification & Rates When you first apply for a WorkSafe Injury Insurance you are asked to give details of your workplace, including a description of the activities carried out there. Workplace details identify the activity that contributes most to the value of the goods or services your workplace produces or provides which determines your industry classification.

In most cases, when starting to employ, businesses pay Workplace Injury Insurance premiums at the industry rate. This is because the employer does not yet have any of their own experience to include in the premium calculation.

Industry rates are an indication of the risk level of the particular industry group and are based on the WorkSafe's historical records of the claims experience of all the employers in the group. An industry rate is the average rate of premium that needs to be collected to cover the costs of all WorkSafe Injury Insurance claims in a given industry.

If you are in a high risk industry, such as concreting, abattoirs, or long distance road transport, you are more likely to have claims and consequently your industry rate will tend to be higher.

It is important that you provide your agent with accurate information about your workplace to make sure you are correctly classified. You must also notify your WorkSafe agent of any changes in your business that may affect your classification. If you think your business may be wrongly classified you should talk to your agent.

Further information

The “industry rate” is based on five years' of claims experience. These rates are between 0.31% and 11.79%, and take into account the transition to the new insurance system.

The "industry claims cost rate” is calculated by taking the industry’s claims costs for the most recent three years' experience, divided by the remuneration of the industry.

For more information about how your Workplace Injury Insurance premium is calculated, refer to the booklet Your WorkSafe Injury Insurance 2006/07

If you would like to know more about your industry classification, speak to your WorkSafe Agent.

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