What is Workers’ Compensation Insurance?

Workers’ Compensation Insurance covers a worker’s wages if they suffer a work-related injury or disease and are unable to return to work for a period of time. The rules regarding Workers’ Compensation differ from one state and territory to the next, but it can be considered compulsory for any business that employs workers on a full-time, part-time, casual or apprenticeship basis.

Key Highlights

Workers’ Compensation Insurance ensures that injured or sick workers are supported to return to work through injury management and income support. It also protects the rights of that worker while they’re unable to work.

  • Employers must provide workers’ compensation cover to anyone defined by the Workers’ Compensation Act 1951 as a ‘worker’.
  • Each state and territory has different rules in place for businesses.
  • Workers’ compensation provides workers with a range of support to help them return to work.

Why might I need Workers’ Compensation Insurance?

To ensure compliance with workers’ compensation legislation, businesses must have a valid Workers’ Compensation policy in place for any worker they employ. The definition of a ‘worker’ is very broad and covers:

  • Full-time workers on a wage or salary
  • Part-time, casual and seasonal workers
  • Workers on commission
  • Working directors
  • Contractors and subcontractors (depending on their working arrangement
It protects your business

Workers’ compensation can protect businesses against lawsuits when a worker sustains an injury or work-related disease in the course of their employment.

How much does Workers' Compensation Insurance cost, and what factors are your premium calculated on?

Each state and territory has its own workers' compensation scheme, which means the schemes are administered differently. Therefore, the cost of a policy may vary depending on where you operate, in addition to other factors relevant to the business.

HIA Insurance Services can assist with Workers' Compensation Insurance only in Western Australia, Tasmania, the Australian Capital Territory, and the Northern Territory. HIA Insurance Services acts as a broker in these regions by sourcing quotations and taking out a policy on a business's behalf. For the states and territories where HIA Insurance Services can assist, below are some common factors that could determine a premium. This is subject to terms and conditions and policy limits.

  • Business industry and operations.
  • Value of wages paid to employees.
  • Number of employees.
  • Previous history of claims.

If you operate in one of these states or territories, and require this type of insurance, please contact one of our specialists to learn how much a policy could cost your business.

If you are a builder who operates in New South Wales, Victoria, South Australia, or Queensland, HIA Insurance Services unfortunately cannot assist you. A builder who is required to purchase Workers' Compensation insurance in these states can directly contact the relevant compensation scheme at the websites, listed below to find out more.

New South Wales (NSW):

A builder is required to obtain this coverage directly from icare, https://www.icare.nsw.gov.au/employers/take-out-a-policy/workers-insurance-policies#gref

Victoria (VIC):

A builder is required to obtain this coverage directly from Work Safe, https://www.worksafe.vic.gov.au/

South Australia (SA):

A Builder is required to obtain this coverage directly from the South Australian Government (Return to Work SA ReturnToWorkSA - work injury insurance (rtwsa.com))

Queensland (QLD):

A builder is required to obtain this coverage directly from WorkSafe Queensland https://www.worksafe.qld.gov.au/claims-and-insurance/workcover-insurance

What is covered?

Workers’ Compensation Insurance provides financial compensation to workers if they sustain a work-related injury or illness and are unable to work.

Compensation may cover the following:

  • Weekly payments to cover loss of earnings
  • Assistance with medical expenses
  • Workplace rehabilitation to assist a return to work
  • A permanent impairment lump sum payment.

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Why HIA Insurance Services?

HIA Insurance Services (HIAIS) is a joint venture between the Housing Industry Association (HIA) and Aon. The partnership means HIAIS can combine the construction industry expertise of the HIA with the risk and insurance knowledge of Aon to provide products and advice that are specific to the residential construction industry.

We understand the unique risk exposures of Australian builders, tradies and subcontractors, which means we can offer you policies that are tailored for risks commonly found in the construction sector, as well as fast and efficient claims processes.

Frequently Asked Questions
HIA Insurance Services is committed to helping our clients manage risk in the workplace, which leaves them to concentrate on running their businesses. In partnership with Aon and Allianz, HIA Insurance Services offers complimentary Workers’ Compensation and Injury Management services exclusively for our clients called our First Response Pack. It contains all the information a business needs to access workers’ compensation for an injured or ill worker and can help manage their safe return to work following an injury.
A contractor or subcontractor may be defined as a ‘worker’ if the contractor/subcontractor is engaged by another person to do work for the purpose of the other person’s trade or business and the contractor/subcontractor is paid for his/her personal manual labour or services.

Where contractors or subcontractors are listed as a company, businesses should obtain a Certificate of Currency of their Workers’ Compensation policy as that business can be held liable for accidents involving its employees. Other subcontractors and their employees are the business’s responsibility to insure as they may be considered by law to be direct employees.
We have two rating methods available – Turnover and Contractors’ Payments. These are used to determine the most cost-effective Workers’ Compensation Insurance policy for a business.

Worker’s Compensation Insurance for the Building and Construction Industry in Western Australia, South Australia, Tasmania, the Northern Territory and the ACT is arranged by HIAIS and underwritten by QBE Insurance (ABN 78 003 191 035, AFSL 239545). If you purchase this insurance, HIAIS will receive a commission that is a percentage of the premium. Further information can be found in HIAIS’ FSG or provided upon request.