Insurables — Australian business risk, sourced and dated

How workers compensation works for WA employers

In short

  • WorkCover WA regulates the Western Australian scheme; it does not itself sell the policy.
  • Employers place cover with a private insurer WorkCover WA has approved, usually through a broker or the insurer directly.
  • Larger employers who qualify can apply to become self-insurers instead of holding a policy with an approved insurer.

Western Australia runs its workers compensation scheme differently from its eastern neighbours: there is no single state insurer, and no central claims-agent structure either. This page sets out who regulates the WA scheme, who actually underwrites the policy, and what the alternative to a standard policy looks like.

Knowing which of those three roles a business is actually dealing with saves a call to the wrong office.

WorkCover WA regulates; it does not insure

WorkCover WA is the government agency responsible for overseeing and regulating the workers compensation and injury management scheme in Western Australia. It sets the framework — including definitions and licensing standards for insurers — but it is not the entity a business buys a policy from.

The policy comes from an approved insurer

Cover is placed with a private insurer that WorkCover WA has approved to write workers compensation business in the state. An employer typically works through a broker or contacts an approved insurer directly, and the insurer looks at the scope of cover needed, any contractual requirements already agreed — such as being noted for a principal’s indemnity, or a waiver — and the business’s claims history in putting the policy together.

What the insurer needs to price it

Accurate remuneration records and a clear picture of the workforce — including which roles are employees and which are contractors or subcontractors — are what an insurer and a broker use to work out the premium and confirm who the policy actually needs to cover. Getting the workforce structure wrong at this stage tends to produce a coverage gap later rather than just a pricing correction.

Self-insurance as an alternative

A Western Australian employer that qualifies can move away from the approved-insurer model and become a self-insurer, taking on the licensed responsibility for its own claims rather than paying premium to a private insurer. This is a separate licensed pathway with its own standards, not a bigger version of the ordinary policy.

Questions

Is WorkCover WA my insurer?
No. WorkCover WA regulates the scheme and approves which insurers can write the business. The policy itself is held with one of those approved insurers.
Can I choose any insurer I like?
Only from the insurers WorkCover WA has approved to write workers compensation in the state. It is a narrower list than the general insurance market.
Is self-insurance available to a business of any size?
It is generally reserved for employers who meet WorkCover WA’s own standards for the arrangement. Checking directly rather than assuming eligibility is the reliable step.

Sources

  • WorkCover WA — insurance for employers — The WA scheme regulator on employers engaging a licensed insurer, and on insurers being obliged to report policies to WorkCover WA for monitoring. Governing statute: the Workers Compensation and Injury Management Act 2023 (WA).
  • WorkCover WA — The Western Australian work injury scheme regulator. It licenses and monitors insurers rather than underwriting cover itself.

Related

Clauses this page relies on