Self Insured employer status is available to those employers who excel in Occupational Health and Safety (OHS) and in the management of their own claims. It provides employers with greater flexibility and an opportunity to minimise overall costs. However, a decision to apply for self insured employer status involves considerable thought.
Self Insurers remain subject to the Workers Rehabilitation and Compensation Act and must provide full benefits to their employees in accordance with the Act.
Before you apply
Before applying for self insurance you should note some key points, namely:
- An application fee is payable.
- On attaining self insurance an employer becomes directly responsible for all new claims from its workers, and must enter into a contract with WorkCover to manage any existing claims.
- The applicant must meet a set of financial criteria to establish its ability to meet claims. It would be unusual for an employer with net tangible assets of less than $50 million to be considered acceptable.
- The self insurer must provide, at its own cost, annual actuarial reports, financial guarantees, excess of loss insurance and transmit claims data to WorkCover.
- A self insurer must pay a levy as a contribution to the overheads of the WorkCover scheme and this includes a component to cover the liabilities of self insurers in the event of insolvency. This levy is a small percentage of what the employer would pay if it was not self insured.
To apply
The first step of an application is to contact WorkCover, Self Insured Operations, to arrange a meeting.
Basic WorkCover policies on self insurance are set out in the Code of conduct for self-insured employers.
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