Workers compensation insurance
Workers compensation insurance covers your employees injured at work. Mandatory for all employers in Australia. Separate from public liability insurance.
Ask Chalkline about this →Workers compensation insurance covers the cost of wages, medical treatment, and rehabilitation for employees who are injured or become ill as a result of their work. In Australia, it is mandatory for all employers and is administered by state-based schemes: icare in NSW, WorkSafe in Victoria, WorkCover Queensland, WorkCover WA, and the equivalent body in each other state and territory.
For builders, workers compensation covers your direct employees on site. It does not cover subcontractors who hold their own ABN and supply their own labour, though the line between employee and contractor is closely scrutinised by state regulators (see sham contracting). Workers compensation is entirely separate from public liability insurance, which covers injury to third parties (clients, neighbours, members of the public), not to your own workers.
Also known as: Workers comp, WorkCover (brand name used by several state schemes).
Category: Insurance
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Last updated: 2026-05-10. Verified: 2026-05-10. Quarterly review for currency.