Workers Compensation Insurance in Western Australia

Workers compensation insurance covers the statutory entitlements payable to a worker who suffers a work-related injury or illness, including weekly payments, medical and related expenses and, in some cases, permanent impairment. Western Australia operates its own scheme, so the rules that apply here are set by state legislation.

That scheme sits under the Workers Compensation and Injury Management Act 2023, which commenced on 1 July 2024, and is regulated by WorkCover WA. Employers who employ workers must hold a policy with an approved insurer, or hold self-insurer status.

Annex Risk Advisory is a Perth commercial insurance brokerage. As a workers compensation insurance broker, we help Western Australian employers arrange and maintain their policy, review how the business is classified, prepare wage declarations at renewal, and coordinate with insurers when a claim is made.

Because entitlements are set by legislation rather than negotiated between insurer and insured, this class works differently from most others. The cover itself is prescribed. What varies is how a business is classified, how accurately its wages are declared, and how well claims and return to work are managed.

That is where broker involvement tends to be most useful, and where the difference between one employer and another usually shows up.

The obligation applies to employers who employ workers in Western Australia. The definition of worker under the scheme is broad and does not always align with how a business describes its own arrangements, so some contractors and subcontractors may be treated as workers depending on the substance of the engagement rather than the label on the invoice.

That makes the question a live one for construction and infrastructure businesses engaging subcontractors, transport and logistics operators using owner drivers, and labour hire providers, as well as for mining and resources contractors moving crews between sites and principals.

Working directors sit in their own category. In some circumstances a director who works in the business can elect to be covered, and whether that is available and how it is arranged depends on the structure of the business and on the insurer.

Employers operating in more than one state need to consider each jurisdiction separately, because the schemes differ and a policy taken out in Western Australia does not automatically respond elsewhere. Which scheme applies generally turns on the worker’s state of connection.

Principals, head contractors and labour hire clients also commonly ask for evidence that a current policy is in place before work starts, and some require a certificate of currency for each engagement rather than once a year. Where an obligation of that kind is set out in a contract, the arrangements in place need to be read against the agreement rather than assumed to comply.

Annex takes a risk-first approach. Before approaching any insurer, we work to understand how the workforce is structured, how many people are employed, which contractors are engaged and on what terms, where the work is performed, and what principals and head contracts require.

Workers compensation insurance is arranged through approved insurers, so the market is narrower than on other classes and accuracy matters more. We assist with insurance program design and placement, including reviewing how the business is classified under the scheme, since classification and declared wages are the two inputs that drive the premium calculation. Where a classification no longer reflects what the business does, that is worth raising with the insurer.

Workers compensation insurance also sits alongside other classes rather than overlapping with them. Injuries to workers generally fall outside public liability, and where an incident raises questions about whether officers met their due diligence duties, that becomes a management liability question. Considering them together avoids assuming one policy picks up what another excludes.

We support the wage declaration process at renewal, and can review the insurance obligations in head contracts and labour hire agreements against the arrangements in place.

When a claim is made, claims management and advocacy is part of the service. We assist with lodgement and documentation, liaise with the insurer through the injury management process, and advocate for assessment under the scheme and the terms of the policy.

Both directors are active practitioners, so clients deal directly with senior brokers rather than a rotating account team. Cover is subject to insurer approval, policy terms, conditions and exclusions. Annex Risk Advisory is a signatory to the NIBA Insurance Brokers Code of Practice, and our Financial Services Guide and Terms of Engagement are available online.