Experience based rating

What is experience based rating?

Experience based rating (EBR) uses your previous claims experience and wage information to determine the likely cost of claims for the next year. It takes into account:

• your claims cost experience—the past three years of statutory claims costs, then the next two years of damages claims costs (five years in total)
• your business size relative to your industry (by wages)
• your industry’s claims cost performance.

For the full formula, refer to section 17 of the Queensland Government Gazette. All the information we’ve used to calculate your EBR will be on your premium notice. Access a copy of your notice on employer online, or call us on 1300 362 128.

New employers

For the first eighteen months of your accident insurance policy, your premium is calculated using wages times industry rate.

Your EBR will not come into effect until after your first eighteen months of insurance, as there is no claims experience to use yet.

When you renew your policy after that period has passed, your provisional premium will be calculated with EBR.

Succession—employers acquiring new businesses or transferring workers

If you're employing entity changes, and you meet the criteria for succession to apply, we'll carry your claims and wage history over to your new policy so you don’t start back on the industry rate.

Please call us on 1300 362 128 if there have been changes to your business, and to see if you can have succession applied to your new policy.

Why do we use EBR?

We use EBR to calculate your premium rate because it links your claims costs to the cost of your premium. Many different types of insurance are calculated like this.

For example, your motor vehicle insurance will likely be calculated using a similar model. The safer a driver you are, and the fewer times you damage your vehicle, the lower your premium can become. EBR works much in the same way.

The sizing factor component of EBR can also help to reduce premium volatility for Queensland small businesses.

We're committed to helping Queensland employers manage their claims costs and run a safe workplace. We look at ways to add value for money by offering a range of consulting services, at no extra cost, to help you control your workers' compensation costs.  

More on WorkCover industry classifications.