An Excess of Loss policy (also known as a catastrophe insurance policy) is required as part of your permit conditions, and:
- is taken out to limit your exposure in the event of a significant or catastrophic occurrence
- provides coverage in the event by capping expenses at an agreed level
- provides you with indemnity for at least $50 million for any one event.
An Excess of Loss policy has an excess (also known as the deductible or retention value). This is the amount that you must count on each event before being able to claim on the policy.
The excess for an Excess of Loss policy, on each claim event, is not to exceed $1 million unless approved by the WorkCover Tasmania Board in writing.
The policy should list the self-insured retention amount.
When to secure the policy
- On application. Once the Board grants you provisional approval, you must secure an Excess of Loss policy and provide a copy of the full policy to the Board.
- Annually. Once secured, you should review the Excess of Loss policy to ensure it is still adequate and provide evidence of the currency to the Board, via WIMS.