If you operate a trade or business and hire workers on a regular, casual or contract basis, you must maintain a current workers compensation policy except in very limited circumstances.
Workers compensation provides valuable protection to you and your workers in the event of a workplace injury or illness.
In certain circumstances, you may also be liable for the workers compensation of any contractors you employ, as they may be regarded as deemed workers. For further information, see principal contractors.
Currently, there are seven agents who issue workers compensation policies to NSW employers.
To take out a workers compensation policy, you will need to provide your agent with information about:
- the nature of your business activity
- past workers compensation insurance details
- the number of workers you employ
- an estimate of wages paid to your workers.
Your workers compensation premium is based upon the risk of injury in the industry in which you work, the wages you pay your workers and, if your tariff premium is greater than $10,000, your claims expense resulting from your workplace safety record. The better you manage workplace safety, the lower your premium .
Your responsibilities
As an employer, you must :
- keep your workers compensation insurance policy up-to-date
- keep correct wage records of your workers for at least five years
- keep a register of injuries that is accessible to all your workers.
- report all work- related injuries or illnesses to your agent within 48 hours if they are likely to result in a workers compensation claim – for further information, see incident notification.
- display the ‘Watching out for you’ poster (catalogue number 22.1) prominently in your workplace – it summarises your obligations under the Workers Compensation Act 1987 and the Workplace Injury Management and Workers Compensation Act 1998, and provides contact details of your agent and return to work coordinator (to obtain a copy, phone WorkCover on 1300 799 003 ).
- provide workers with a copy of your return to work program upon request – the program should be developed in consultation with your workers and updated at least every two years, or following changes to the legislation or your workplace (for further information, see Return to Work Program).
Refer to the following publications and frequently-asked questions for more information about workers compensation.