Obtaining workers’ compensation insurance involves several steps, and the process may vary depending on your location and the specific requirements of your business. Here’s a general guide on how to take out a workers’ compensation insurance policy:
Depending on the size of your business, your obligations may differ. There may also be differences to how your policy is calculated.
For claims lodgement and wage declaration purposes, your policy period runs from midnight on the policy commencement or renewal date for a period of 12 months.
Not sure if you need workers compensation insurance?
If you have employees in NSW, you probably need a workers compensation insurance policy. Visit our Who needs a policy page for more information.
If your average performance premium (that’s total wages multiplied by your industry rate) is $30,000 or less, you’re considered a small employer for workers compensation insurance purposes.
This means your premium will not be directly impacted by your claim’s costs, but you may not be eligible for the Safe Employer Reward if weekly benefits have been paid on a claim in the three years prior to renewal.
However, if you have an average performance premium of $30,000 or less but are a member of a group, then your employer category is based on the group’s average performance premium.
In that instance, your claims costs will impact your premium, unless the group average performance premium is $30,000 or less.
Medium to large employers
Medium and large employers that have an average performance premium greater than $30,000 are ‘experience-rated’.
Experience-rated means we’ll factor in your claims history, which may affect your premium.
Your claims performance rate (CPR) rewards you with a lower premium if you have a good record of managing worker safety and recovery at work. Your CPR is calculated by comparing your claims performance with other NSW businesses. If your claims performance is better than the Scheme average, then your premium will be lower than your average performance premium.
If you’re a large business, you have the option of moving to a Loss Prevention and Recovery (LPR) product to reduce your premiums.
To take out a policy we’ll need to know:
- General details about your business (eg legal name, ABN, postal and operating addresses, and contact details).
- A start date for the policy
- The type of business
- Details of past workers compensation insurance
- The number of workers you employ
- An estimate of wages paid to workers
- Bank details so refunds can be returned quickly and securely.
Remember, the difference between workers and contractors may not be as straightforward as you think.
Get a certificate for your insurance
A Certificate of Currency is evidence that your business is covered for workers compensation insurance.
The Certificate shows the Workers Compensation Industry Classification for your business, number of workers, estimated wages and policy period covered.
A Certificate can be issued for up to 12 months, however it can’t extend beyond the expiry date of the current workers insurance policy.
Once you take out a new policy we will send you your Certificate of Currency along with your ‘Welcome Pack’, which contains all your policy documents.
Understand Legal Requirements:
Familiarize yourself with the workers’ compensation laws in your state or jurisdiction. Different regions have varying requirements, and it’s essential to comply with the specific regulations applicable to your business.
Verify whether your business is required to carry workers’ compensation insurance based on factors such as the number of employees and the nature of your business operations.
Contact Insurance Providers:
Reach out to insurance providers that offer workers’ compensation coverage. You can contact commercial insurance companies, state-operated insurance programs, or other sources of workers’ compensation insurance.
Provide Business Information:
Be prepared to provide detailed information about your business, including:
- Number of employees.
- Nature of your business operations.
- Payroll information.
- History of workplace injuries or claims.
Obtain quotes from multiple insurance providers to compare coverage options and costs. Consider factors such as coverage limits, deductibles, and any additional services offered.
Select a Provider:
Choose a workers’ compensation insurance provider based on the coverage that best suits your business needs and budget. Ensure that the provider is licensed to operate in your state.
Complete Application Process:
Work with the selected insurance provider to complete the application process. This may involve submitting application forms, providing financial information, and agreeing to the terms of the policy.
Pay the required premiums for the workers’ compensation coverage. Premiums are typically based on factors such as your payroll, industry classification, and the history of workplace injuries.
It’s important to note that the specific steps and requirements for obtaining workers’ compensation insurance can vary by jurisdiction, so it’s advisable to consult with local insurance regulators or legal professionals to ensure compliance with local laws and regulations.