Workers compensation insurance protects Australian businesses and employees by covering costs from work-related injuries, illness and rehabilitation.

Workers compensation insurance is a mandatory form of cover that provides financial support to employees who suffer injury or illness as a result of their work. Under Australian law, every employer must hold a valid workers compensation policy for their staff, regardless of business size or industry.

This insurance ensures that injured workers receive medical treatment, rehabilitation, and income support without needing to sue their employer. It also protects businesses from legal liability and the financial burden of workplace incidents.

Typical coverage includes:

• Medical and hospital expenses
• Rehabilitation services
• Weekly income replacement
• Lump-sum payments for permanent impairment or death
• Funeral costs and family support
• Access to education, retraining, and domestic assistance

Some schemes also cover psychological injuries such as PTSD, anxiety, and depression, depending on the jurisdiction.

Australia operates 11 separate workers compensation schemes, one for each state and territory, plus three Commonwealth schemes. Each has its own rules, definitions, and approved insurers. Businesses with staff in multiple locations must comply with each relevant jurisdiction.

Employers are also required to:

• Maintain a register of workplace injuries
• Notify their insurer within 48 hours of an incident
• Support the employee’s return to work
• Cooperate with claims investigations

Failure to hold workers compensation insurance can result in significant fines, legal action, and reputational damage. More importantly, it leaves employees vulnerable during recovery.

In short, workers compensation insurance is a legal obligation and a vital safeguard. It protects people, supports recovery, and ensures businesses meet their duty of care.