Workers Compensation Insurance

Who is covered by workers compensation insurance?

In Australia, workers compensation insurance is compulsory. Any business that employs workers is required to have a valid workers compensation policy in place regardless of the industry, turnover or size. Any business that employs or hires workers on any basis, must have workers compensation insurance for every single worker.

‘Workers’ can refer to:

• full-time and part time employees
• casual employees
• apprentices and trainees
• interns (if paid under a formal agreement)
• volunteers (in limited circumstances)
• staff working from home (if performing work-related duties)
• workers paid on commission (if not running their own business)
• directors who work in the business, and
• contractors and sub-contractors (in some circumstances, e.g. working under your direction, using your tools, etc).

What happens if you don’t take out workers compensation when you ought to?

Injured employees can make workers compensation claims even if their employer has not taken out a policy.

The relevant state or territory authority will step in to process the claim and ensure the worker receives their full entitlements under the legislation. The relevant insurer will then recover the full cost of the compensation paid from the uninsured employer.

The uninsured employer may be:

• Liable for the full cost of the claim, including weekly payments, medical expenses, and compensation;
• Required to manage return-to-work obligations, such as providing suitable duties and maintaining communication with the injured worker; and
• Subject to investigation, fines and penalties, or prosecution for failing to hold a valid workers compensation policy, including fines and potential criminal charges in some jurisdictions.

The financial costs of not insuring an employee can be devastating for the uninsured employer, particularly small-to-medium enterprises. Weekly compensation and medical benefits, common law damages, and penalties for not insuring can easily add up to more than a million dollars.

Arranging workers compensation insurance

The location(s) of your business will determine the workers compensation arrangement. In New South Wales, Victoria, Queensland and South Australia the scheme is underwritten by a single government provider, meaning businesses may not be able to choose their insurer.

In the ACT, Northern Territory, Tasmania and Western Australia, workers compensation is privately underwritten, and employers can choose their insurer from approved providers.

The Commonwealth, states and territories are responsible for implementing, regulating and enforcing Work Health and Safety (WHS) laws in their jurisdictions. For more information about WHS laws that apply in each jurisdiction, visit the Safe Work Australia website.

EBM will work closely with you to understand your business requirements

When reviewing your Workers Compensation requirements, we take into consideration:

• The scope of available cover required including statutory benefits, common law, journey claims and industrial diseases.
• Contractual requirements extending to accommodate principals’ indemnity, waivers and hold harmless provisions, where available.
• Your claims history.

Contact Us