A LOCAL business manager predicts that small and medium-sized enterprises will bear the brunt of skyrocketing insurance costs, with a significant impact expected from 2023 to 2025.
Air Elite Group business manager Katie Bolton reported that her business had seen a 150% surge in WorkCover Insurance costs, along with a 33% rise in company vehicle insurance this year.
While WorkCover Insurance is a mandatory requirement for all Queensland employers, Ms Bolton expressed frustration with the limited choice available to businesses.
“We do not get a choice of insurance providers and are forced to go with the government-owned insurance only,” she said.
“Therefore, it is a generic blanket over the industries and of a huge cost to businesses, especially of those businesses who remain claimless.”
Ms Bolton pointed out that even with the help of professional insurance brokers, understanding WorkCover premiums remained a significant challenge.
“I do not think the guidelines are clear for those who do not engage professional insurance brokers or gain assistance with their insurance from professionals,” she said.
“The fine print, changes in policies, terms, and conditions can catch the time-poor business owner off guard.”
She expected a major negative effect on business insurance, which would take on most of the costs during the 2023-2025 financial years.
“As high WorkCover premiums increase, small and medium-sized businesses will need to reassess financially, and this may limit their expenses and ability to employ new staff,” she said.
“Small and medium-sized businesses will never be able to manage their insurance costs while the goalposts keep moving and the unexpected can occur.”
Ms Bolton believes WorkCover Queensland needs to be reviewed and reflective of current businesses.
“The cost seems to be increasing in high amounts annually, even for businesses not making claims,” she said. “The Queensland Government could invest in avenues here to better support businesses and business owners who are employing and better-skilling locals and taking the pressure off unemployment away from the taxpayers.”
Ms Bolton offered a practical tip for Queensland residents, urging them to consider taking out WorkCover Queensland Household Workers Insurance.
“This insurance is $50 for a two-year term and covers any contractors, including cleaners, babysitters/nannies, and gardeners should they not have adequate insurance under their business and have an accident or injury whilst working at your home,” she advised.
