Do I need WorkSafe Injury Insurance?

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

Note: Incorporated contractors can still be deemed to be workers irrespective of whether the company has its own WorkSafe Injury Insurance policy.

If your worker has a work-related injury or illness and you do not have WorkSafe Injury Insurance 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.

Penalties may also apply in the event that you underestimate your rateable remuneration or fail to notify your Agent of the correct figure within 28 days of exceeding your last estimate.

The minimum cost of WorkSafe Injury Insurance in 2008/09 is $156.20 (including GST).

If you are not required to have a policy and one of your workers makes a claim for compensation, you must report the claim to WorkSafe or your Agent and pay a fee of $142.00 (GST not applicable).

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 WorkSafe Injury Insurance 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 (including apprentices or trainees) of proprietary limited companies who receive salaries or wages are workers and are covered under WorkSafe Injury Insurance. 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 WorkSafe Injury Insurance  if the company's remuneration (i.e. wages, salaries, director’s fees etc) exceeds $7500.