Self-insurers
All jurisdictions, except Seacare and the Department of Veterans’ Affairs, allow employers to self-insure for workers’ compensation if they meet certain requirements. Table 7.1 compares workers’ compensation coverage and self-insurance coverage in jurisdictions.
Self-insurance allows employers to manage and pay for their employees’ claims for work-related fatality, injury and illness, rather than paying premiums to insurers to take on those responsibilities. Once employers self-insure, they no longer pay workers’ compensation premiums. However, they are still required to pay a levy that is a fair contribution towards the overheads of administering the scheme. Self-insuring employers manage their injured workers’ claims and rehabilitation and are responsible for meeting their claim liabilities. Self-insurers must reapply to self-insure after a period of time.
The regulatory authorities in each jurisdiction must be satisfied that self-insuring employers have adequate work health and safety, injury management and return to work arrangements, as well as the capacity to effectively manage workers’ compensation. Self-insured companies must conform to each jurisdiction’s specific legislative requirements, such as the level of benefits payable to injured employees. Table 7.2 outlines the criteria for becoming a self-insurer in jurisdictions.
The laws and regulations that must be satisfied to become a self-insurer vary significantly between jurisdictions. If an employer operates in more than one jurisdiction, it must apply separately for self-insurance in each of the jurisdictions in which it operates (except for the Comcare scheme as it is a national scheme). Table 7.3 outlines the application and approval process, ongoing costs and duration of a licence in jurisdictions
As at 31 December 2023 there was no mutual recognition between the jurisdictions. Therefore, if an employer qualifies for self-insurance in one jurisdiction it does not automatically qualify for recognition in another jurisdiction.