Work Cover / Compensation

Do I Need A WorkCover Policy?

Who needs an insurance policy

If you engage workers or contractors deemed to be workers and you pay, or expect to pay, more than $7,500 a year in rateable remuneration, or if you engage apprentices or trainees, you must take out a WorkSafe injury insurance policy.

This applies to you even if you are a small company, partnership or sole trader with only one or a small number of workers.

Sole Traders & Partnerships

If you are a sole trader/proprietor or a member of a partnership, you are not a worker of your own business. Therefore, you cannot take out a WorkCover policy for yourself. However, if you employ any workers, apprentices or trainees you may need to take out a policy to cover them. If you are hired as a worker by someone else, that person may need to take out a policy to cover you.

Companies

Directors and employees of proprietary limited companies who receive salaries or wages are workers and are covered under WorkCover. This includes where the company is a trustee. This means that if you are a director of your own company and receive any payments expensed as salaries or wages, or if you run a company that employs any directors who receive salaries or wages, you must take out a WorkCover policy if the company's remuneration (i.e. wages, salaries, director’s fees etc) exceeds $7,500.

Not Insured

If your worker has a work-related injury or illness and you do not have a WorkSafe injury insurance policy in place, the benefits payable to the injured worker are guaranteed by WorkSafe. However, you may face penalties for failing to hold a policy and you may be liable for the full cost of any claims incurred while you were uninsured.