How is my premium calculated?

We calculate your premium by multiplying an estimate of your wages by your premium rate. Your premium rate is calculated using experience based rating (EBR), with claims experience as at the beginning of the period of insurance.

Your net premium payable is your premium payable for the current period of insurance, plus any adjustment for the previous period of insurance (based on wages only).

How is my premium rate determined?

The premium rate paid by a new employer is the industry rate for the WorkCover Industry Classification (WIC) for their particular industry. This is because the employer has insufficient claims experience to use in the EBR formula.

After your policy has existed for eighteen months, the premium rate is calculated using EBR. This means that your individual claims experience is taken into consideration.

An individual sizing factor for each employer is incorporated into the EBR system. A sizing factor determines what weighting is given to your claims experience and what weighting is given to your previous year’s rate when calculating your premium rate. The higher your sizing factor, the more weighting is placed on your experience. The lower your sizing factor, the more weighting is placed on your prior premium rate.

This means the larger an employer, the more impact their claims experience will have on their premium rate. Smaller employers have less weighting on their claims experience. This ensures less volatility in premium rates from year to year.