Workers compensation insurance

If a work-related accident or illness occurs, work health and safety (WHS) laws require that workers can access first aid, workers' compensation and return-to-work rehabilitation.

It's your responsibility as an employer to:

  • maintain a safe workplace
  • maintain current and adequate workers' compensation insurance
  • protect yourself and your workers from financial hardship in the event of a workplace injury.

As an employer, you need to maintain current and adequate workers' compensation insurance to protect you and your workers against financial hardship as a result of a workplace accident.

In most cases, you must provide accident and sickness insurance for your employees or workers’ compensation through an authorised insurer .


Independent contractors may require their own insurance. See our Independent contractors’ topic for more information.

If you employ a contractor to perform duties for your business, check with the workers' compensation authority listed in your state or territory .

Sole traders

As a sole trader, you can’t cover yourself as an ‘employee’ with workers’ compensation insurance. This means you’ll need to consider your own personal death, illness and disability insurance.

You can cover yourself for accident and sickness insurance through a private insurer. This policy will compensate you for loss of revenue while you recover.

Find out more

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