Your Policy

Learn about your workers compensation policy in Victoria.

Who needs a workers’ compensation policy?

Workers’ compensation is compulsory for most businesses in Australia. If you employ someone to work for you, whether it be full-time, part-time, as a contractor or an apprentice, you’ll need to take out a workers’ compensation policy.

Employers with annual wages of no more than $7,500 do not need to have a workers’ compensation policy in Victoria. This exemption does not apply to employers who engage an apprentice/trainee.

You will need to take out a policy if you hire:

  • contractors
  • apprentices or trainees
  • a director working for an employer
  • a beneficiary employed by a trust
  • household domestic staff.

Who is covered by a policy?

All employees are covered by a workers’ compensation policy and are entitled to compensation for an injury that occurs out of or in the course of their employment (where their employment is deemed to be a significant contributing factor).

If you are a sole proprietor, a member of a partnership, or a trustee, you are not a worker of your own business and therefore you cannot take out a Workers Compensation policy.

Obtaining a policy

The easiest way to obtain a policy is through our online quoting system. You can also get a certificate of currency through our system anywhere, anytime.

Alternatively, contact your insurance advisor or our customer service team on 1800 066 204.

Premium calculation

The main component of your workers compensation premium will be calculated by multiplying your total wages by the applicable rate set out by WorkSafe Victoria.

For some employers, additional premium may be payable over and above the basic tariff to take into account their claims experience and other government costs.

We offer a number of free seminars, including a Premium Calculation seminar, to help you understand the complexities of workers compensation.

Premium calculation for large employers

As a large employer, your claims performance can potentially have a significant impact on your premium. 

CGU will work with you to focus on specific areas or claims that are negatively impacting your premiums, in order to reduce the cost of workers compensation. We’ll keep you regularly updated on how your portfolio is tracking and the impact any claims are having on your premiums. We can also provide you with benchmarking information to let you compare your workers compensation performance with your peers’. 

We provide training to employers wanting to know more about how their premium is calculated and how to accurately forecast for the future

Premium payment options

Subject to any changes you make to the policy details, premiums are calculated twice yearly.

The first or initial premium is calculated in late August and may be paid in installments, depending on the premium amount. Premium under $50,000 are payable quarterly. Premium over $50,000 are payable monthly.

You may also elect to pay your full annual premium up front and receive a 3% discount.

The final (or confirmed premium) is calculated in September. The confirmed premium accounts for any adjustments due to changes between estimated and certified remuneration. In most cases, any premium adjustments must be paid in full by October.

Employer obligations

A workers compensation policy is required by a business which employs workers in Victoria and has an annual remuneration of $7,500 (or is likely to pay more than $7,500) or employs an apprentice or trainee.

As an employer you have a number of obligations regarding your workers compensation policy, including:

  • taking out and maintaining a workers compensation policy
  • providing us with estimated and actual wage declarations for each policy period you are insured
  • maintaining proper wage records for every person you employ
  • notifying us if your workplace or activities change (as this may change or alter your workplace classification and premium)
  • notifying us within 28 days if your remuneration increases by 20% or more
  • paying your premium by the due date.

As an employer, you also have obligations when one of your employees is injured at work. For further information, see the claims section for employers.

Managing your policy effectively for large businesses

As a large business, your company structure may mean that you have complex needs when it comes to managing your workers' compensation policy.
Your account manager will work with you and your adviser to understand your business structure and strategy. Supported by a team of specialists, your account manager can help make the management of your portfolio of policies as effective and efficient as possible.

Information when you want it

Our performance reporting tool, Workers Compensation Online, can help you keep track of your policy and premium, providing forecasts based on your claims experience and estimated wage information. 


Get a Quote Online

Get a quote, cover note or take out a new policy.