WorkCover assisting you to keep your business safe and successful
Safe Business
When and how can I cancel my workers compensation insurance policy?
Insurers now have consent from WorkCover to cancel policies in the following three cases:
- ceased trading
- if the employer has ceased trading, evidence of having ceased trading must be provided. The return of unclaimed mail is not acceptable proof of having ceased trading.
- liquidator/trustee in bankruptcy appointed.
- the policy cannot be cancelled when a liquidator or administrator is appointed and the employer continues trading.
- business is sold by employer.
Employers in any of the above situations should write to their insurer with the relevant documentation/information, requesting the cancellation of the policy.
WorkCover does not give consent to insurers to cancel a policy if the employer:
- can take out a new policy at a lower premium following the issue of an Insurance Premiums Order
- simply no longer has employees.