Broker-arranged
Workers compensation insurance
Workers compensation covers your employees if they’re injured or become ill because of their work. Every state and territory runs its own scheme, with its own rules on who must insure and with whom. A licensed broker can help you get it right.
- The rules for every state and territory in one place
- One short form, then a licensed broker takes it from there
Do you need workers compensation insurance?
If you employ workers, you almost certainly do. Every state and territory makes workers compensation compulsory for employers, with its own scheme, insurers and thresholds. WorkCover WA, for example, notes penalties of up to $10,000 per worker for not holding the required insurance.
It covers your workers’ lost wages and medical costs after a work-related injury or illness, and protects your business from the cost of those claims. Public liability excludes your employees, so it can’t fill the gap.
Workers compensation by state and territory
| State | Who insures | When you need it |
|---|---|---|
| NSW | icare | If you pay more than $7,500 in wages a year, take on an apprentice or trainee, or are part of a group of businesses. |
| Victoria | WorkSafe Victoria | If you pay more than $7,500 in rateable remuneration in a financial year, or hire any apprentice or trainee. |
| Queensland | WorkCover Queensland | If you employ workers, unless you’re an approved self-insurer. |
| South Australia | ReturnToWorkSA | Register within 14 days of employing a worker. Employers paying under $16,806 in total wages for 2026–27 don’t need to register, unless a worker is injured. |
| Western Australia | Insurers approved by WorkCover WA | Compulsory for employers. You can go to an approved insurer directly or use a broker. |
| Tasmania | Insurers licensed by WorkCover Tasmania | Employers must hold a policy with a licensed insurer, or a permit to self-insure. |
| ACT | Insurers licensed under the Workers Compensation Act 1951 | Employers insure through a licensed insurer. |
| Northern Territory | Insurers approved by NT WorkSafe | Compulsory for every employer that isn’t a self-insurer, covering full-time, part-time and casual workers. |
In NSW, Victoria, Queensland and South Australia you insure through the state scheme. In WA, Tasmania, the ACT and the NT you choose between licensed private insurers, which is where a broker can compare options.
Sole traders and contractors
Workers compensation is for your workers, not for you. If you work for yourself as a sole trader, look at accident and sickness cover or income protection. business.gov.au notes that this kind of policy pays you for loss of income while you recover.
Some contractors count as workers under state rules. ReturnToWorkSA, for example, reminds businesses to check whether their labour hire workers and subcontractors are covered. Check with your state’s scheme before assuming a subcontractor sits outside your policy.
What workers compensation doesn’t cover
It covers your workers’ work-related injuries and illness. These need other cover:
- A customer or member of the public is injured.That’s public liability. Public liability
- You’re a sole trader and you can’t work.Income protection or accident and sickness cover, arranged by a broker. Income protection
- An employee claims unfair dismissal or harassment.Employment practices cover, usually part of management liability. Management liability
How to get workers compensation through us
Workers compensation questions
Is workers compensation compulsory?
Yes for most employers. Every state and territory requires employers to insure their workers, with thresholds that vary. NSW and Victoria use a $7,500 wages threshold, and any apprentice or trainee means you need a policy.
Do sole traders need workers compensation?
Not for themselves. Workers compensation covers your employees. If you employ anyone, including an apprentice, you’ll likely need a policy. For your own income, look at income protection.
Can I choose my workers compensation insurer?
It depends on the state. In NSW, Victoria, Queensland and South Australia you insure through the state scheme. In WA, Tasmania, the ACT and the NT you choose from licensed insurers.
Does public liability cover my employees?
No. Public liability covers people outside your business. Injuries to your workers are covered by workers compensation.
What if I employ people in more than one state?
Each state’s rules apply to workers based there. ReturnToWorkSA notes that businesses based outside South Australia that employ workers in the state are likely to need to register.
Is workers compensation the same as WorkCover?
Mostly. WorkCover is the name some state schemes use, such as WorkCover Queensland and WorkSafe Victoria’s WorkCover insurance. In NSW the scheme is run by icare. They all provide workers compensation for employees.
Is WorkCover insurance compulsory in Victoria?
Yes, once you employ people. WorkSafe Victoria explains who must register for WorkCover insurance, with a small exemption for businesses that pay very little in wages.
How much does workers compensation insurance cost?
Premiums are set by each state’s scheme and depend on your wages bill, your industry’s risk and your claims history. There are no prices on this page; a broker can tell you what applies in your state.
Keep reading
More broker-arranged cover
Sources
- icare: Do I need workers compensation insurance?
- WorkSafe Victoria: Do I need to register for WorkCover insurance?
- WorkSafe Queensland: Who needs workers’ compensation insurance?
- ReturnToWorkSA: Register for cover
- WorkCover WA: Engaging a licensed insurer
- WorkCover WA: Employer essentials fact sheet
- WorkSafe Tasmania: Workers compensation insurance
- WorkSafe ACT: Licensed insurers
- NT WorkSafe: Workers compensation insurance requirements for employers
- business.gov.au: Types of business insurance
Workers compensation