How your premium is calculated
We base your accident insurance premium on your wage costs, industry and claims history. Here’s a clear breakdown of how we calculate your premium, what information we need from you and what you can do to manage your costs.
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What affects your premium
We look at three main factors to work out your premium:
- your wages – how much you pay your workers
- your claims experience – the cost of any injury claims made against your business
- your industry – each industry has a different rate based on overall risk.
You pay your premium provisionally
This means:
- you pay at the start of the financial year based on your estimated wages, and
- we adjust it in the next year’s renewal if your actual wages are different.
You’ll also pay GST (goods and services tax) and stamp duty on your premium.
How your industry affects your premium
Each policy has a WorkCover Industry Classification (WIC)
Your WIC is the ‘identity’ of your policy. It:
- is based on the main activity of your business
- groups you with similar employers
- assigns a level of normal injury risk for your industry.
Learn more about how we use WICs.
How your industry rate works
Your industry rate is the average premium rate for your industry, as assigned by your WIC.
It’s based on information from employers across the industry, including:
- claims history
- injury risk
- workplace safety.
We use your WIC and its linked industry rate as the starting point for calculating your premium.
Industry rates are set each year and published in the Queensland Government Gazette.
How your claims costs affect your premium
Your claims experience
To work out your premium, we look at your ‘claims experience’.
This is the cost of claims made against your business.
Helping workers recover and return to work sooner
Getting workers back to work sooner can reduce claim costs.
Lower claim costs may mean a lower premium.
If you’ve held your policy for less than 18 months
If you’ve just started employing workers within the last 18 months, your premium rate is your industry rate.
This means:
your premium = (estimated wages/$100) x industry rate
We also add GST and stamp duty.
Why we use the industry rate
It’s your starting point. It:
- reflects the injury risk profile of your industry
- helps ensure fairness and consistency for new employers.
What happens after 18 months
Your policy moves to one of our premium calculation models.
This is because after 18 months, your premium can reflect:
- your claims history
- how injuries are managed in your workplace over time.
If you’ve held your policy for 18 months or more
We use a premium calculation model to work out how much you should pay.
There are two main models:
- Simplified model – for businesses with $1.5 million or less in wages per year
- Experience-based rating (EBR) – for businesses with more than $1.5 million in wages per year.
How we calculate premium if you buy an existing business
If you buy an existing business, the previous employer’s wages and claims history may carry over to your new policy. This is called succession.
Succession doesn’t apply in all cases.
If your business has changed hands, contact us. We’ll check if succession applies.
Ways to reduce your premium
There are many practical ways to lower your premium.
Visit our how to reduce your premium page to learn more.
Estimate your premium online
Our premium simulator tool can give you an estimate of your accident insurance premium before it’s formally assessed.
See how key factors may affect your premium
The tool shows how changes to key details – such as your estimated wages and claims costs – may affect your premium rate.
Access the simulator through WorkCover Connect in just a few steps
- Log in to WorkCover Connect
You’ll need your username and password. Forgotten your login details? You can reset them securely online. - Click ‘Insurance’, then ‘Premium simulator’
You’ll find it in the left side menu once you log in.
Your final premium may change
The premium simulator gives you an estimate only.
Your final premium may differ due to:
- final declarations of actual and estimated wages
- changes to your industry rate from the previous year
- your final claims costs as at 30 June.
The simulator can support your planning and budgeting, but it does not replace your final premium assessment.
Related pages
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