(Feature Image: Workers compensation in WA)
If you operate a business with employees in Western Australia, workers compensation insurance is generally a legal requirement. Employers must hold a workers compensation policy to cover workers if they suffer a work-related injury or illness.
For many employers, this requirement sits alongside other insurance considerations such as public liability or commercial motor insurance. Ensuring you’re across how workers compensation insurance works in WA helps you understand your obligations and how workplace injury claims may be handled.
Workers Compensation Obligations for WA Employers
Workers compensation insurance exists to assist when a worker is injured or becomes ill because of their work.
In Western Australia, most employers are required to hold a workers compensation policy. The scheme is designed to provide support for workers while also helping employers manage financial exposure associated with workplace injuries.
Depending on the circumstances, a policy may respond to certain costs associated with a workplace injury. These may include medical treatment, rehabilitation support or income payments while a worker is unable to perform their normal duties.
The exact response will always depend on the circumstances of the claim and the terms of the policy.
Who Needs Workers Compensation Insurance in WA?
In general, businesses that employ workers in Western Australia must hold workers compensation insurance.
This requirement usually applies regardless of the size of the business or the number of employees. Workers compensation obligations can apply to a wide range of employment arrangements, including:
- Full-time employees
- Part-time employees
- Casual staff
- Apprentices and trainees
Even businesses with only one worker may still be required to hold a policy. As employment arrangements can vary between industries, some business owners seek guidance when determining whether workers compensation cover is required.
(Image: Workplace injury)
The Role of WorkCover WA
Workers compensation in Western Australia operates under a regulated scheme overseen by WorkCover WA. The organisation sets the framework for the scheme, regulates participating insurers and provides guidance to employers about their obligations.
WorkCover WA also oversees matters such as injury management processes, employer responsibilities following workplace injuries and dispute resolution within the scheme. While WorkCover WA regulates the system, workers compensation policies themselves are arranged through approved insurers.
Workers Compensation Insurers in Western Australia
Unlike some other states where workers compensation is managed through a single government insurer, Western Australia operates a private insurer model. Businesses arrange workers compensation policies through insurers authorised to participate in the WA scheme.
These insurers assess each business individually when determining premiums. This assessment generally considers factors such as the type of work performed, the wages paid to employees and the claims history of the business.
(Image: Workers compensation insurance in WA)
How Workers Compensation Premiums Are Calculated
Workers compensation premiums are usually calculated based on several factors related to a business’s workforce and operations. Insurers typically consider elements such as:
- The total wages paid to employees
- The type of work employees perform
- The level of injury risk associated with the industry
- The claims history of the business
Industries with higher injury exposure may attract higher premium rates due to the increased likelihood of claims. Businesses with strong safety practices and lower claim activity may see different premium outcomes compared with those operating in higher-risk environments.
For employers, this means workers compensation premiums can differ depending on the risk profile of the business.
Arranging Workers Compensation Insurance
Arranging workers compensation insurance usually begins with declaring key details about your business and workforce. Insurers typically require information about wages and the type of work employees perform so the business can be classified correctly for premium purposes.
The process generally involves:
- Declaring the type of work performed by employees
- Estimating total wages or payroll for the policy period
- Confirming industry classifications used to calculate the premium
Policies are usually reviewed each year. During this process, employers confirm the actual wages paid and update any changes to workforce size or business activities that may affect the premium for the following period.
Understanding how these declarations work can help you avoid under-declaring wages or misclassifying work activities, which can create complications if a claim occurs.
Speak With Insuregroup About Workers Compensation Insurance
Insuregroup assists businesses across Western Australia with arranging workers compensation insurance.
Our team can assist with reviewing business activities, discussing insurer options and obtaining quotes from insurers operating within the WA workers compensation scheme.
If your business employs workers in Western Australia and you need guidance on workers compensation cover, the Insuregroup team can assist with reviewing your requirements and arranging quotes from approved insurers.