Having workers compensation is compulsory for most businesses in NSW.
However you can cancel your policy if your business closes down, is sold off, you cease to employ or if a liquidator is appointed.
How to cancel your policy
To cancel your policy use our online form
You'll need details of your actual wages for the period leading up to your cancellation date. This will allow us to determine if there are any premium amounts outstanding, or if you're entitled to receive a refund.If your policy is cancelled, your business will continue to be covered for claims in relation to injuries that occurred during the time the policy was active.
When to cancel your policy
You can only cancel your policy under specific circumstances.
If you've ceased trading
You can cancel your policy if your business has ceased trading, and you can provide evidence.
If you've sold your business
You can cancel your policy if you sell your business. The new owner will need to take out a new workers compensation insurance policy to cover employees.
If you cease to employ workers
If you cease to employ but there's a claim in the current policy period, you can cancel your policy at the next policy expiry.
If you become an exempt employer
If you have a current policy and your wages decrease to $7,500 or less, you can cancel the policy at expiry and the premium you pay will depend on the wages you declare, however the minimum premium is $175.
If you take out policy and don't employ workers
If you take out a policy, pay part of full premium and subsequently don't pay wages, we can cancel the policy but the minimum premium payable is $175.
In all other situations, you should contact icare to discuss your reasons for wanting to cancel the policy. The matter may be referred to us for a formal decision to cancel and a cancellation date.
Please call icare on 13 44 22
When we can't cancel your policy
We can't cancel your policy if:
- you take out a new policy at a lower premium
- a liquidator or administrator is appointed and you continue trading (even if the liquidator or administrator attempts to take out a new policy).