Insurance for medium and large employers

Medium and large employers are "experience-rated" businesses with an average performance premium (total wages x your industry rate) greater than $30,000.

Reforms to the premium calculation formula for experience-rated employers commence on 30 June 2015.

If you're an experience-rated employer  your premiums will be impacted as the result of a claim. Your claims performance is calculated at the renewal date of your policy and includes your claims for the three years prior to commencement of the policy period. Your claim costs will be the same for both your initial and hindsight premium calculations. This means the hindsight premium calculation will not include the claims incurred during the policy period.

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.

Transitional capping arrangements

If your premium percentage rate under the new premium formula is more than 30 per cent higher than your premium percentage rate under the old formula, then you can request your insurance agent to refer the matter to us for review.

These are some frequently asked questions:

My premium has increased significantly as a result of the new formula. Who do I contact to have the premium reviewed?

No premium will increase by more than 30 per cent on the adjustment premium for the previous policy period. 

Please contact your insurance agent, who will review your premium and advise you whether a transitional downward adjustment may be required.

What is the process for applying for a downward adjustment?

Your insurance agent will compare your latest premium calculations to your premium for the previous year.  If your premium percentage rate under the new premium formula is more than 30 per cent higher than your rate under the old formula, then your insurance agent will refer the matter to us for review.

We will notify your insurance agent if a downward adjustment should be applied to your premium. You will be notified of the outcome by your insurance agent.

My WorkCover industry classification has changed and I now pay a higher premium rate. Can I apply for a downward adjustment?

No. Transitional arrangements for the new premium formula do not apply to increases in premium because you have changed your business activity, or where your business classification is different in 2015-2016 from 2014-2015 (where both classifications are correctly applied).

Over the past year my business has grown and wages have increased significantly. Can I apply for a downward premium adjustment if my new premium percentage rate is more than 30 per cent higher than my old rate?

Yes. If your premium percentage rate under the new premium formula is more than 30 per cent higher than your rate under the old formula, then your insurance agent will refer the matter to us and, where applicable, a downward adjustment will be applied to the premium.

Further information on transitional adjustment provisions and the formulas used to determine premium percentage rates are provided in the Insurance Premiums Order 2015-2016.

A number of other incentives and discounts are in place to encourage good claims performance and reduce your premium.

Experience adjustment protection/capping

Premium caps are extended to large employers to provide protection from significant experience-based premium increases.  Eight caps are in place with the maximum cap at 3.5 times the Average Performance Premium.

Premium caps are applied to the eight employer categories outlined below. Table C of the Insurance Premiums Order provides the full table of claims performance adjustment rates used in the premium calculation.

Average Performance Premium (APP)

Premium Cap (before adjustments)

$50,000 or less

1.75 x APP

>$50,000 to $100,000

1.85 x APP

>$100,000 to $200,000

2.0 x APP

>$200,000 to $300,000

2.25 x APP

>$300,000 to $500,000

2.5 x APP

>$500,000 to $1,000,000

2.75 x APP

>$1,000,000 to $2,000,000

3.0 x APP


3.5 x APP

Claims costs included in the experience premium

For policies which start or renew on or after 30 June 2015 claims costs included in the premium calculation are as follows

  • weekly compensation payments
  • provisional weekly compensation payments
  • permanent impairment payments
  • death benefit value
  • commutation payments
  • common law payments

The cost of an individual claim is capped at $150,000 per policy period and impacts the premium for three years following the end of the policy period in which the injury occurred. Your claims costs for the last three years, as at the policy renewal date, will be used for both the renewal and adjustment premium calculations.

Your premium will only change if there is a change in your wages or industry classification during the policy period.