Workers Compensation throughout Australia is a Statutory Insurance and is regulated by the various States and Territories within their own Workers Compensation Acts. Based on the fact the insurance is governed by statute any person or entity who employs someone must effect workers compensation insurance or depending on the jurisdiction have measures in place to protect their employees. Here in the ACT it is compulsory to have a policy in force and the employer must declare all workers and deemed workers twice a year to the Insurance Company they have chosen to write their policy.
The insurance in the ACT is still an open market place with 7 Insurance Companies or Underwriters with a licence to supply Workers Compensation Insurance. Being an open market means that the Underwriters compete for business based on price, system delivery and claims handling. For employers in NSW there is no price differential, the Underwriters can only compete on systems delivery and claims handling performance.
Although there has been some clarity recently between the jurisdictions with respect to “cross border issues” we recommend employers who in the day to day running of their business have employees who cross borders ensure they have protection for both jurisdictions.