Insurables — Australian business risk, sourced and dated
Cover type

Workers compensation insurance: what it covers and who carries it

Statutory cover for injury to workers, arranged through each state or territory scheme rather than on the open market.

Data as at · refreshed by scripts/seed-graph.mjs

In short

  • Workers compensation is statutory cover for injury to workers, bought through the scheme in each state or territory rather than on the open market.
  • Every scheme defines "worker" in a way that can include some contractors, which is where most businesses get caught.
  • Cover is compulsory once a business employs workers as its scheme defines them, with narrow exemptions that differ by state.

Workers compensation is the one insurance most Australian employers cannot shop for. Each state and territory runs its own scheme, sets its own rules about who counts as a worker, and either underwrites the cover itself or licenses private insurers to do it.

It is also the cover with the sharpest consequence for getting it wrong: operating without it where it is required attracts penalties, and the scheme can pursue the employer for the cost of a claim.

Also called: workers comp, workers compensation, workcover, work cover insurance

Eight schemes, not one market

Some jurisdictions run a single public insurer; others license private insurers to write the cover under scheme rules. The premium basis is broadly similar — declared wages against an industry classification — but the thresholds, the exemptions and the certificate process differ.

This site tracks each scheme separately, with the values recorded against the regulator publication they came from, because a figure that is right in one state is simply wrong in the next.

Who counts as a worker

The definition is statutory, not contractual, and it does not turn on whether somebody has an ABN. Several schemes deem particular arrangements to be employment regardless of what the parties called it, and labour hire and contractor relationships are the usual battleground.

A business that engages subcontractors and has never checked the deeming rules in its state has an open question, not a settled one.

  • Employees on wages, full time, part time or casual
  • Some contractors, where the scheme deems the arrangement to be employment
  • Apprentices and trainees, which can remove an exemption a business was relying on
  • Working directors, whose treatment differs sharply between schemes

What people get wrong about it

The most dangerous belief is that a subcontractor with their own ABN is automatically outside the scheme. Deeming provisions do not care about the ABN, and the business that engaged them can end up carrying the claim.

The second is that a sole trader is covered by their own policy. Schemes generally cover workers, not the proprietor, which is why personal accident cover exists as a separate product for people who cannot be their own worker.

The third is that being under a wages threshold means nothing needs to happen. Where an exemption exists it usually has conditions attached, and an injury can still create obligations for an exempt employer.

Questions

I am a sole trader with no employees. Do I need workers compensation?
Generally the scheme covers workers rather than the business owner, so a sole trader with nobody working for them usually falls outside it. That also means no scheme benefit if the owner is injured, which is the gap personal accident cover is written for. The rules differ by state and the scheme pages here record each one.
My subcontractor has an ABN. Am I covered?
Not necessarily. Every scheme has provisions that can deem a contractor to be a worker of the business engaging them, and holding an ABN does not settle the question. The scheme page for the relevant state records how that state defines a worker.
How do I prove I hold it?
Through a certificate of currency issued by the scheme or the insurer. The process differs by state, and the scheme pages here record the channel each one uses and what the certificate shows.

Clauses that turn up in this cover

  • Certificate of currency — A one-page confirmation from an insurer or broker that a policy is in force, showing the insured, the policy type, the period of cover and the limit.

Statutory schemes that require it

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.

  • Recruiters — Placement and on-hire of staff, including labour hire into host workplaces.
  • 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.
  • Commercial cleaners — Contract cleaning of offices, strata common property, construction sites and end-of-lease work.
  • 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.
  • Gardeners — Grounds maintenance, mowing and garden care for domestic, strata and commercial clients.
  • 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.
  • Shed builders — Supply and erection of steel sheds, garages and rural buildings.
  • Kitchen installers — Removal and installation of kitchens, coordinating trades in an occupied home.
  • Bathroom renovators — Bathroom strip-out and rebuild, combining waterproofing, tiling and plumbing trades.
  • Window installers — Supply and installation of windows and doors in new and existing openings.
  • Fire protection technicians — Installation, testing and certification of fire detection and suppression systems.
  • Lift technicians — Installation and maintenance of lifts, escalators and access equipment.
  • Signwriters — Design, fabrication and installation of signage, often at height or on shopfronts.
  • Scaffold hire operators — Hire of scaffolding and temporary access equipment, with or without erection.
  • Equipment hire operators — Dry and wet hire of tools, plant and access equipment to trades and the public.
  • Carpet cleaners — Steam and dry cleaning of carpets and upholstery in homes and commercial premises.
  • Window cleaners — Internal and external window cleaning, including rope access and elevated work.
  • Pressure cleaners — High-pressure cleaning of driveways, facades, roofs and industrial surfaces.
  • Gutter cleaners — Clearing and maintaining roof gutters and downpipes, working at height.

How it is evidenced

Sources