How Do I Choose The Buy Out Option?

Under normal circumstances, an employer is responsible for the first ten days of weekly benefits for an injured worker who is off work, and the first *$564 (*indexed annually on 1 July) of reasonable medical and related expenses.

However, you can remove this cost by taking up the buy-out option by paying an additional loading of 10.0% on your your WorkSafe Injury Insurance premium. This means that your claims are managed and paid for by your WorkSafe Agent from day one. This makes it easier for employers, especially small businesses, to manager the early stages of a claim.

The formula for the buy-out option (B) is:

B = WP x 0.10

Where: WP = the WorkSafe insurance premium

The buy-out option is available to all employers. If you intend to take up or remove this option, you must notify your WorkSafe Agent by 31 August.

The buy-out option applies for a full policy term.  The buy-out option must apply for a whole policy term for an employer. An employer cannot opt in or out of buy-out part way through a policy term.