Your insurance obligations

If you expect to pay more than $7,500 a year in rateable remuneration, or if you have apprentices or trainees, you must take out a WorkSafe insurance policy.

This applies to you even if you are a small company with only one worker.

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.

Penalties

If you fail to take out WorkSafe insurance, and one of your workers suffers an injury at work, WorkSafe may still pay compensation.  However, the cost of compensation provided to your worker will be recovered from you and you may also face a significant fine. The penalties are outlined in WorkSafe's premium rulings.

Penalties may also apply if you underestimate your rateable remuneration.

If you have information about an employer you suspect is not meeting their insurance obligations, please email premium_information@worksafe.vic.gov.au

Sole traders and 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 insurance for yourself. 

If you are hired as a worker by someone else, that person may need to take out a policy to cover you.

Companies

A company must take out WorkSafe insurance if they pay more than $7,500 a year in rateable remuneration. Directors and employees of proprietary limited companies (even if you are a director of your own company) who receive wages are covered by WorkSafe insurance. This includes instances where the company is a trustee.

Trustees

Trustees can be in the unique situation where they are the employer of different businesses being run by different trusts. Trustees may hold separate WorkSafe insurance policies for each independent businesses they run under trusts.

Further information