Why do I need Workers Compensation Insurance?

24 August 2022

Workers Compensation Insurance is designed to cover expenses incurred by your business following an injury to one of your employees. If your business operates in Australia and employs workers, having your Workers Compensation Insurance sorted out is compulsory.

Who’s covered?

Generally speaking, anybody who works for your business, whether they’re full-time, part-time or casual, will be covered by your workers compensation insurance. There are some details and exceptions that vary from state to state; you can check the relevant state government website to learn more.

If you’re a sole trader, you can’t cover yourself as an employee under workers compensation. You’ll need to consider your own insurance against injuries and loss of income.

What’s covered?

Workers compensation insurance is designed to help you cover the wages of an injured worker following a work-related injury, for the period in which they’re unable to work.

It’s also designed to cover medical and rehabilitation expenses, meaning that you won’t necessarily have to pay for those out of your business’ operating budget.

How does it work?

The details of your workers compensation scheme will vary depending on the state or territory in which your business is located. In New South Wales, Victoria and South Australia, insurers operate as agents on behalf of the relevant government authorities. In Western Australia, Tasmania, Northern Territory and ACT, the scheme is underwritten privately by insurers. In Queensland, the scheme is entirely operated by the state government.

This means that the exact process for insuring your employees or making a claim can vary. For more details, you can refer to your state government.

How can GIO help?

In addition to providing expert claims management in conjunction with your local authority, GIO offers a comprehensive range of training courses and seminars. These are designed to help you reduce the risk of workplace injuries and their associated costs.

Learn more about training courses

We also have a Risk Management Team, who can help your business to better understand and manage your OH&S and injury management systems and obligations.


Learn more about Workers Compensation Insurance


Insurance issued by AAI Limited ABN 48 005 297 807 trading as GIO. Consider the Product Disclosure Statement before making a decision about this insurance. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it.