Take out a workers insurance policy

All NSW employers require workers insurance to protect their workers against workplace injury or illness.

Depending on the size of your business, your obligations may differ. There may also be differences to how your policy is calculated.

Not sure you need to get workers insurance? Exempt employers are not required to hold a workers insurance policy. Exempt employers:

  • pay $7,500 or less in annual wages; and
  • don’t employ an apprentice or trainee; and
  • are not a member of a group for workers insurance purposes

Find out who needs insurance

Small employers

If your average performance premium (that’s total wages multiplied by your industry rate) is $30,000 or less, you’re considered a small employer for workers insurance purposes.

This means that, if you have an injured worker, their claim costs are not included in your premium calculation - so you don’t have to worry about claims impacting your premium. 

However, if you have an average performance premium of $30,000 or less but are a member of a group, then your employer category is based on the group’s average performance premium.

In that instance, your claims costs will impact your premium, unless the group average performance premium is $30,000 or less.

Find out more about grouping insurance

Medium to large employers

Medium and large employers that have an average performance premium greater than $30,000 are ‘experience-rated’.

Experience-rated means we’ll factor in your claims history, which may affect your premium.

Your claims performance rate (CPR) rewards you with a lower premium if you have a good record of managing worker safety and recovery at work. Your CPR is calculated by comparing your claims performance with other NSW businesses. If your claims performance is better than the Scheme average, then your premium will be lower than your average performance premium.

If you’re a large business, you have the option of moving to a Loss Prevention and Recovery (LPR) product to reduce your premiums.

Learn more about Loss Prevention and Recovery (LPR)

To take out a policy we'll need to know:

  • General details about your business (e.g. legal name, ABN, postal and operating addresses, and contact details).
  • A start date for the policy
  • The type of business
  • Details of past workers compensation insurance
  • The number of workers you employ
  • An estimate of wages paid to workers.

Remember, the difference between workers and contractors may not be as straightforward as you think.

Learn more about classifying your workers

Getting a certificate for your insurance

A certificate of currency is evidence that your business is covered for workers insurance.

The certificate shows the Workers Compensation Industry Classification for your business, number of workers, estimated wages and policy period covered.

A certificate can be issued for up to 12 months, however it can’t extend beyond the expiry date of the current workers insurance policy.

To request a certificate of currency for all new and renewed policies call 13 44 22.

You can request a certificate of currency up to 28 days before your policy renewal.

Your request should include details of your estimate of wages, employee and contractor numbers, and your business activity.

Exempt employers are not eligible for a certificate of currency.

Request a certificate of currency