Personal accident and sickness insurance: what it covers and who carries it

Where the gap comes from

State schemes are built around the employment relationship. A person who is not a worker of anyone generally cannot be covered by one, and several schemes say so explicitly.

That leaves the most economically exposed person in a small business — the one whose absence stops all revenue — without the safety net their own employees have.

How the benefit is structured

A weekly benefit is set as a proportion of earnings up to a cap, payable after a waiting period and for a maximum benefit period. Capital benefits are paid as lump sums for specified injuries.

The waiting period and the benefit period are the two settings that matter most, and they are the ones most often left at a default.

What people get wrong about it

The first error is assuming a workers compensation policy covers the owner. It generally covers workers.

The second is assuming sickness is included, when some cover is written for accident only and illness is a separate election.

The third is confusing it with income protection sold as a personal financial product, which is a different regime and a different conversation with a different licence behind it.

Questions

I am a sole trader. Can I get workers compensation for myself?

Generally not, because schemes cover workers rather than the proprietor. The scheme pages here record how each state treats this, and personal accident cover is the class written for the resulting gap.

Is illness covered as well as injury?

Only where sickness has been included. Some policies are accident-only, and the distinction is on the schedule rather than in the product name.

Occupations that commonly carry it

Ordered by how central this cover is to each occupation in the graph. A pattern in the data, not a statement that any business is required to hold it.

• Delivery riders — Food and small-parcel delivery by bicycle, scooter or motorcycle.
• Shearing contractors — Contract shearing and wool handling, supplying teams to properties.
• Couriers — Parcel and document delivery, usually as an owner-driver under a principal’s contract.
• Sports coaches — Coaching of individuals and teams, frequently involving minors.
• Security guards — Licensed guarding, crowd control and patrol services.
• Bus and coach operators — Charter, school and route passenger services under an operator accreditation.
• Disability support workers — Personal and community support delivered in the participant’s home and community.
• Personal trainers — One-to-one and small-group fitness instruction in gyms, parks and homes.
• Gym operators — Operation of fitness facilities, including unstaffed access hours.
• Yoga and pilates instructors — Class-based instruction in studios, halls and outdoors.
• Farmers — Primary production of crops and livestock, with plant, property and liability exposures.
• Agricultural contractors — Contract farm work such as sowing, baling and cultivation using own machinery.
• Irrigation contractors — Design and installation of irrigation systems for farms and grounds.
• Spray contractors — Licensed application of agricultural chemicals, by ground rig and aerially.
• Harvest contractors — Contract harvesting with headers and haulage during a narrow seasonal window.
• Viticulturists — Vineyard operation and management, with crop, plant and visitor exposures.
• Electricians — Licensed electrical work, from domestic fit-outs to commercial and industrial installation.
• Plumbers — Licensed plumbing, drainage and gas-fitting work across domestic and commercial sites.
• Carpenters — Structural and finish carpentry, framing, formwork and fit-out.
• Builders — Licensed building work as principal contractor on residential or commercial projects.
• Handypersons — General maintenance and repair work below the licensing thresholds of the specialist trades.
• Roofers — Roof installation, restoration and plumbing-adjacent roof drainage work at height.
• Painters — Interior and exterior painting and decorating, domestic and commercial.
• Tilers — Wall and floor tiling, waterproofing-adjacent work in wet areas.
• Landscapers — Hard and soft landscape construction, including retaining, paving and irrigation.
• Concreters — Formwork, placement and finishing of concrete slabs, driveways and structural elements.
• Scaffolders — Erection, alteration and dismantling of scaffolding, a high-risk licensed activity.
• Welders — Structural and fabrication welding, including hot work on site.
• Solar installers — Design and installation of photovoltaic and battery systems, an accredited electrical specialisation.
• HVAC technicians — Installation and servicing of heating, ventilation, air conditioning and refrigeration plant.
• Earthmoving contractors — Excavation, bulk earthworks and site preparation using mobile plant.
• Demolition contractors — Licensed demolition and strip-out, including work adjacent to hazardous materials.
• Arborists — Tree assessment, pruning and removal, frequently near structures and services.
• Pest control technicians — Licensed application of pesticides and termite management for domestic and commercial property.
• Bricklayers — Brick, block and masonry walling for residential and commercial structures.
• Plasterers — Wall and ceiling lining, cornice, rendering and set finishing.
• Glaziers — Supply and installation of glass in windows, doors, shopfronts and balustrades.
• Waterproofers — Membrane and tanking work to wet areas, balconies, roofs and below-ground structures.
• Stonemasons — Cutting, dressing and installing natural and engineered stone, including benchtops and cladding.
• Cabinet makers — Manufacture and installation of joinery, cabinetry and built-in furniture.
• Shopfitters — Fit-out of retail and commercial tenancies, usually working to a landlord’s conditions.
• Flooring installers — Laying timber, vinyl, laminate and carpet in domestic and commercial spaces.
• Insulation installers — Installation of thermal and acoustic insulation in roofs, walls and subfloors.
• Fencing contractors — Boundary, security, pool and rural fencing, including gates and automation.
• Paving contractors — Laying pavers, kerbs and hard surfaces for driveways, paths and public areas.
• Asphalt contractors — Surfacing and resurfacing of roads, car parks and driveways with hot-mix and bitumen.
• Civil contractors — Roads, drainage, subdivisions and utilities work, usually under principal-supplied contracts.
• Steel fixers — Placing and tying reinforcement before concrete pours.
• Structural steel erectors — Erection of structural steel frames, portal frames and mezzanines.
• Riggers — High-risk licensed rigging and dogging work supporting lifts and structural erection.
• Crane operators — Operation and hire of mobile and tower cranes, usually with an operator supplied.
• Formworkers — Construction and stripping of formwork for suspended slabs, walls and columns.
• Concrete pumpers — Placement of concrete by boom and line pump, operating over occupied sites.
• Asbestos removalists — Licensed removal and disposal of asbestos-containing material.
• Traffic controllers — Traffic management and control at roadworks and site accesses.
• Line markers — Marking of roads, car parks and sports surfaces.
• Antenna installers — Installation and tuning of television antennas and reception equipment, mostly at height.
• Garage door installers — Supply, installation and servicing of garage and roller doors and their motors.
• Swimming pool builders — Construction of in-ground and above-ground pools, including barriers and certification.
• Deck builders — Construction of timber and composite decks, pergolas and outdoor structures.

Sources

• Moneysmart (ASIC) — General guidance on business insurance from the regulator’s consumer site. A starting point, not a definition of this cover.
• Insurance Contracts Act 1984 (Cth) — Federal Register of Legislation — The statute governing how insurance contracts operate in Australia, including the duty owed when taking out cover.