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. To cancel a policy, you will need to complete a cancellation of policy request form and return it to icare.
You may also cancel your policy at expiry if you become an exempt employer.
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.
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 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 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 you cease to employ
If you cease to employ but there is a claim in the current policy period or you have paid your premium in full or your business is a Pty Ltd company, your policy can be cancelled at 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.
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 policies can't be cancelled
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)