What Type of Insurance do I Need by Law?

If you employ staff, by law you must have Worker's Compensation insurance which covers employees for injury or death in the workplace.

Type of Company	Insurance Needed
Incorporated	Workers' Compensation
Sole Trader or Partnership	If you are a sole trader or partnership and employ staff, you must have Workers' Compensation insurance but you aren't covered by it yourself
Private Individual	If you employ someone in your home such as a housekeeper or gardener and their wages are less than a specified statutory amount which varies on a per-State basis, there is no need to purchase Workers' Compensation insurance, they are automatically covered by Work Cover.  If their wages are over this statutory amount however, you must take out Workers' Compensation insurance

 If you are a sole trader or operate a business partnership, you are not eligible for Workers' Compensation insurance so sickness and accident or income protection insurance is recommended.

Although not usually required by law, it is highly recommended that businesses take out public liability insurance to provide cover against third parties suing you for personal injury or property damage incurred while on your property.  Often, proof of public liability insurance is required before a business is able to rent premises.

If you have any queries about this or would like more information, please contact us.

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