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.
We'll consider your organisation for LEAP if you are eligible for a self-insurance licence in Queensland as a single or group employer and you employ at least 2,000 full-time workers (FTE) in Queensland (total number of ordinary time hours worked during a continuous 6-month period in the last 12 months divided by 910 = Total FTE, under section 73 of the Workers' Compensation and Rehabilitation Act 2003).
We will also consider your application if you are:
- a returning entity to the WorkCover Queensland fund; or
- exiting the Queensland scheme.
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)
- 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).
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 Adjustments||Run-off Factor||Release Factor||Run-off Factor||Release Factor|
You can read more detail about our LEAP product in the Queensland Government Gazette.