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Most NSW employers get workers compensation insurance from icare, which manages the state's Workers Compensation Nominal Insurer under the name Workers Insurance. You must have a policy unless you pay $7,500 or less in wages a year, don't employ an apprentice or trainee, and aren't part of a group of businesses. The State Insurance Regulatory Authority (SIRA) regulates the scheme.
icare sells the policy and sets your premium, while insurers it engages, such as EML, Allianz, GIO, Gallagher Bassett and QBE, manage claims. This page covers who must insure, how premiums are worked out for small and larger employers, the 2026-27 premium settings, contractors and sole traders, and how to take out a policy.
By Better Rate Mate Editorial Team · Last reviewed
| New South Wales | |
|---|---|
| Insurer | icare, as manager of the Workers Compensation Nominal Insurer (Workers Insurance) |
| Claims managed by | EML, Allianz, GIO, Gallagher Bassett and QBE, engaged by icare |
| Other options | Specialised insurers licensed by SIRA for specific industries; self-insurers approved by SIRA |
| Regulator | State Insurance Regulatory Authority (SIRA) |
| Who must insure | Every employer except one that pays $7,500 or less in wages a financial year, has no apprentice or trainee, and isn't part of a group |
| Start date | Cover starts when the policy is issued and can't be backdated |
| How premiums are set | Wages × industry (WIC) rate = Average Performance Premium; experience-rated above $30,000 |
| 2026-27 settings | WIC rates unchanged; cap on premium increases for experience-rated employers cut from 30% to 25% |
| Sole traders and partners | Can't cover themselves |
| How to buy | Online through icare (about 10 to 15 minutes), or by phone on 13 44 22 if you've held a policy before |
| Law | Workplace Injury Management and Workers Compensation Act 1998 and related legislation |
NSW separates the roles. icare manages the Workers Compensation Nominal Insurer, which it calls Workers Insurance: it issues policies, collects premiums and pays for claims. It engages insurers to manage claims day to day, and at the time of writing those are EML, Allianz, GIO, Gallagher Bassett and QBE. SIRA is the regulator, setting the rules and supervising everyone in the scheme, including icare.
Two smaller groups sit outside icare. Specialised insurers are licensed by SIRA to insure employers in specific industries, and large employers can be approved by SIRA as self-insurers that manage their own claims. For almost every small business, the policy comes from icare.
icare says an employer only doesn't need a policy if it meets all three conditions: it pays $7,500 or less in wages in a financial year, doesn't hire an apprentice or trainee, and isn't a member of a group of businesses. Miss any one and you need cover. A single apprentice on low wages is enough.
Timing matters in NSW. icare says a policy can't be backdated: cover starts when it is issued. Take out the policy before a new worker's first shift, not after the first payroll.
Every employer's starting point is the Average Performance Premium (APP), previously called the Basic Tariff Premium: your wages multiplied by the premium rate for your Workers Compensation Industry Classification (WIC). What happens next depends on the size of that figure.
If your APP is $30,000 or less, you're a small employer and your premium won't change with the number of claims you make. Small employers with no claims in the past three years that have lodged their wage declarations on time can also receive a Safe Employer Reward. If your APP is above $30,000, your premium is experience-rated, meaning your claims history moves it up or down.
For 2026-27, icare confirmed that WIC rates won't change, and it cut the cap on premium increases for experience-rated employers from 30% to 25% for policies starting on or after 30 June 2026. icare doesn't publish a single scheme-wide average rate the way some states do, so the way to know your cost is a quote based on your WIC and wages.
| Small employer | Medium or large employer | |
|---|---|---|
| Average Performance Premium (wages × WIC rate) | $30,000 or less | More than $30,000 |
| Do claims change the premium? | No | Yes, the premium is experience-rated |
| Discount available | Safe Employer Reward for no claims in 3 years and on-time wage declarations | Better claims experience lowers the rated premium |
| Cap on increases (2026-27) | Not applicable | 25% for policies starting on or after 30 June 2026 |
Some people are workers in NSW even though they aren't employees. The categories of deemed worker are set out in Schedule 1 of the Workplace Injury Management and Workers Compensation Act 1998, and SIRA publishes a worker or contractor tool to help you work out where someone falls. If you engage labour-only subcontractors, run them through the tool: an ABN alone doesn't make someone a contractor for workers comp.
icare is direct about this: if you're a sole trader, proprietor or member of a partnership, you can't cover yourself with workers compensation insurance. It suggests personal accident and illness cover or income protection instead. If your business is a company and it employs you, talk to icare about how working directors are treated. See insurance for sole traders for the options.
New employers can get a quote or apply online through icare, which it says takes about 10 to 15 minutes. You'll need your ABN, a description of your business activity so the right WIC can be applied, and an estimate of wages for the period. Employers who have held a policy before can also call icare on 13 44 22.
At renewal each year you declare the actual wages you paid, and the premium is adjusted. Lodging that declaration on time matters for small employers, because it is one of the conditions for the Safe Employer Reward.
Each state and territory runs its own scheme, and an employer registers where its workers are based. If you employ people in more than one state, check each scheme, or see the eight schemes side by side.
Yes, for almost every employer. You are exempt only if you pay $7,500 or less in wages a financial year, don't employ an apprentice or trainee, and aren't part of a group of businesses.
icare manages the NSW Workers Compensation Nominal Insurer, known as Workers Insurance. It issues most employers' policies and engages insurers such as EML, Allianz, GIO, Gallagher Bassett and QBE to manage claims.
No. icare says WorkCover NSW was replaced in 2015 by three agencies: icare provides workers compensation insurance, SIRA regulates the insurance side of the scheme, and SafeWork NSW regulates workplace health and safety.
Your wages multiplied by the rate for your industry classification (WIC) gives your Average Performance Premium. Above $30,000 the premium is adjusted for your claims experience. WIC rates are unchanged for 2026-27, and icare quotes are the way to see your figure.
No. icare says sole traders, proprietors and partners can't cover themselves, and suggests personal accident and illness cover or income protection instead.
No. icare says cover starts when the policy is issued and can't be backdated, so take it out before a new worker starts.
Better Rate Mate is an independent comparison site. We are not a workers compensation insurer, agent or regulator, and this page is general information for employers, not advice. For a policy, a premium or a claim, contact the scheme or a licensed insurer directly. If you have been injured at work, your employer's insurer and the regulator listed above can explain your entitlements.
