Employers Mutual is expanding its workers’ compensation offering to the NSW hospitality industry, restructuring into a new business for hotels and clubs.

The creation of Hospitality Employers Mutual Ltd comes as the NSW Government reforms the state’s workers’ compensation system to allow specialist insurers to increase their presence in the market.

But Hospitality Employers Mutual CEO Rod Geer told insuranceNEWS.com.au the launch of the new company is coincidental to the reforms and the result of 12 months’ planning.

He says the hotel industry, covering pubs to upmarket hotels, generates premium income of around $35 million. The licensed clubs sector generates about the same amount.

Employers Mutual and the Australian Hotels Association (AHA) earn around $45 million from their specialist workcover licence for hotels and some clubs, and saw the opportunity to expand.

Hospitality Employers Mutual is owned by Employers Mutual, the AHA and Clubs NSW. It will operate through two brands: Hotel Employers Mutual and Club Employers Mutual.

Mr Geer says Hospitality Employers Mutual can work closely with members and get injured staff back to work sooner because its case managers understand the industry.

He says the company’s return to work outcomes are 20-50% better than those of NSW WorkCover.

“We have low caseloads because we are driven by our own bottom line, not by a WorkCover fee,” he said.