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Large Employer Alternative Pricing

If you're a large employer in Queensland, you have options when it comes to how we calculate your premium.

We can use the existing Experience Based Rating (EBR) calculation method. Or you can choose for us to use the Large Employer Alternative Pricing (LEAP) method.

What are the benefits of LEAP?

The LEAP method offers a premium pricing model that recognises injury prevention, rehabilitation and return to work

It may be a better option for you if your industry’s claim costs are higher than your organisation’s claim costs.

Who's eligible?

We'll consider your organisation for LEAP pricing if you employ at least 2,000 full-time workers (FTE) in Queensland. You must also be eligible for a self-insurance licence in Queensland as a single or group employer.

When reviewing your application, we’ll take into account your:

  • claims history
  • occupational health and safety performance
  • compliance with Work Health and Safety and Workers' Compensation and Rehabilitation Act and Regulation

We consider the last five consecutive injury years.

We want to see that your organisation shows a genuine commitment to work health and safety. So, we'll look at your ability to improve safety practices, manage incidents and assist workers to return to work after an injury. A senior executive from your organisation needs to commit to continued safety and injury management in writing.

Applying for LEAP

If you would like to arrange a meeting, please contact your WorkCover Relationship Manager.

How we calculate your LEAP premium

Your period of insurance under LEAP is 3 consecutive years.

For each injury year, we calculate:

  • Your upfront normal EBR premium
  • Three annual premium adjustments (plus GST and stamp duty)

Consider:

  • the annual adjustment = release factor x [(Claims x Runoff factor) - (EBR + all prior adjustments)]
  • Min / max premium cap: +/- 50% of EBR premium

Updated run-off and release factors appear annually in the Queensland Government Gazette.

Your claims costs include:

  • Four-year run-off (claims development) per injury year
  • Individual event-based claim caps: $350,000 or $500,000 (combined statutory and common law costs)
  • All 'net' claim costs (incorporating the cost for journey and recess away from work claims and investigation costs).

Key definitions

Run-off factor is a gross-up factor we use to determine ultimate claims costs for the injury year. We allow for remaining claim development, admin costs and cost spreading. The run-off factor reduces with claims development.

Release factor controls or reduces the volatility of the retrospective adjustment. The release factor increases with claims development.

Factors for 2020-2021 injury year

 $500,000 Event Cap$350,000 Event Cap
Premium AdjustmentsRun-off FactorRelease FactorRun-off FactorRelease Factor
Adjustment 11.8530%1.9030%
Adjustment 21.4560%1.5060%
Adjustment 31.25100%1.30100%

You can read more detail about our LEAP product in the Queensland Government Gazette.