Cancel your workers insurance policy

If you’re closing or selling your business, don’t forget to cancel your workers insurance.

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, call icare on 13 44 22.

You'll also need to send us a declaration of actual wages form (below). This will allow us to determine if there are any premium amounts outstanding, or if you're entitled to receive a premium 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

  • If you've ceased trading

    Your policy can be cancelled if your business has ceased trading. You’ll need to provide evidence that your business has ceased trading. 

  • If you have sold your business

    Your policy can be cancelled if you sell your business.

    The new owner will need to take out a new workers compensation insurance policy to cover employees

  • If a liquidator or trustee has been appointed
    Your policy can be cancelled if a liquidator/trustee in bankruptcy has been appointed and your business has ceased trading.
  • If you cease to employ
    If you cease to employ but there is a claim in the current policy period or your business is a Pty Ltd company, your policy can be cancelled 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, the policy can be cancelled at expiry and the premium you pay will depend on the wages you declare, however the minimum premium is $175.
  • If you take out a policy and do not employ workers
    If you take out a policy, pay part or full premium and subsequently do not pay wages, we can cancel the policy but the minimum premium payable is $175.
  • Other situations
    In all other situations, you should contact icare to discuss your reasons for wanting the policy cancelled. The matter may be referred to us for a formal decision to cancel and a cancellation date.

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).
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