Understand the effect of an excess buyout on the cost of your premium.
When one of your workers is injured, you are liable to pay an excess.
You can avoid the risk of paying the employer excess by selecting the excess buyout option on your WorkCover Insurance premium.
This can be a cost-effective option and is paid as an additional 10% on your premium.
The excess buyout option is available to all employers. If you intend to buy out your excess, or you already have the excess buyout option and do not intend to continue with it, you must notify your WorkSafe agent.
Selecting the buyout option makes it easier for employers, especially small businesses, by significantly reducing the administrative and financial impact on a business in the early stages of an accepted claim.
What is the employer excess?
If one of your workers is injured at work and your WorkSafe agent accepts the claim, as their employer you are required to pay for the first 10 days of weekly benefit payments and for the first $763 (2022/23 - indexed annually) of reasonable medical and related like expenses – this is your employer excess.
Who pays if you remove the excess?
Your claims are managed and paid for by your agent from day one, so you have no financial burden for your WorkCover claim.
How do I opt to remove my excess?
You can do this by logging into Online Employer Services (OES) insurance portal, then update your remuneration and select the excess buyout option.
Alternatively, you can contact your WorkSafe agent and advise them directly. Any change to your excess buyout must be made before 1 August 2022 for it to apply to your 2022/23 WorkCover Insurance Premium.