Your Policy

Learn about your workers compensation policy in NSW.

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, an apprentice or a trainee, 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 NSW. This exemption does not apply to employers who engage an apprentice/trainee or who are members of a group for workers compensation purposes.

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

  • contractors
  • apprentices or trainees
  • a person who does not receive any money for the work done but is paid "in kind"
  • a working director
  • 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 any injury that occurs in the course of their employment (where their employment is deemed to be a significant contributing factor).

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

Obtaining a policy

The easiest way to get a policy is through our online quoting system. You can get a quote, then continue on to purchase your policy. You can do it anywhere, anytime. It’s that simple. Our online system also enables you to get a certificate of currency and renew your policy online.

Alternatively, contact your insurance advisor or our customer service team on 1300 666 506.

Please note: if you are already covered by a workers compensation policy, make sure that your insuring agent has received your written cancellation request by 4pm on the expiry date of your policy.

Premium calculation

The main component of your workers compensation premium will be calculated by multiplying your total wages by the industry classification set out by WorkCover New South Wales.

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.

  • If you are a small employer (i.e. you pay a basic tariff premium of $30,000 or less) the cost of claims will not impact your premium.
  • If you are a medium sized employer (i.e. you pay a basic tariff premium of between $30,000 and $500,000) the cost of claims will have an impact but the impact is limited depending on your basic tariff premium. Employers can contain the impact of claims on their premium by concentrating on finding an injured worker appropriate suitable duties to facilitate early return to work.

Please note that you may change from a small to medium employer during the course of a policy period.

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

CGU offers a range of payment options including:

  • a discount on upfront payments - premiums that are paid in full and in advance are entitled to a 3% discount (excluding minimum premiums of $175 and short-termed or auto-renewed policies)
  • instalment options – premiums above $1,000 may be paid in quarterly instalments. Premiums above $5,000 may be paid in both monthly (via direct debit authority only) or quarterly instalments.

Employer obligations

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
  • allowing inspection of your wage records by an authorised representative appointed by us
  • notifying if your workplace or activities change (as this may change or alter your workplace classification and premium)
  • notifying if your remuneration increases by 25% 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.

Policy Grouping

If you are currently grouped with the Office of State Revenue for payroll taxes, then you may also be grouped for workers compensation purposes.

Grouping applies for employers that have an annual payroll of $600,000 or more. Grouping also requires that all your policies are held with the one agent and that they have a common renewal date.

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 advisor 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 and take out a workers compensation policy.