Under the Workers’ Compensation and Injury Management Act 1981 (WA), any person who works under a contract of service or apprenticeship may be considered a ‘worker’ and must be covered by workers' compensation. This includes some contractors and subcontractors, even if they have their own ABN, operate as a business, or invoice you.

Workers compensation insurance isn't just another business expense—it's essential legal protection for both you and your employees. In Western Australia, if you employ anyone – whether full-time, part-time, or casual – you are legally required to maintain a current workers compensation insurance policy. This requirement applies from the moment you hire your first employee, regardless of the size of your business or industry.

Market stalls present unique liability exposures: Physical Injuries such as tripping hazards or unstable structures. Product Liability if your product causes illness, allergies or injury. Property Damage if your equipment damages the venue or other property. Food vendors also face additional risks related to foodborne illness and contamination. Public liability insurance can cover legal costs, compensation, medical expenses, product liability and property damage.

If you’re a subcontractor in Western Australia, it’s common to be asked by a principal contractor or client to add them as an interested party on your workers' compensation policy, often referred to as a Principal’s Indemnity Extension. This provides evidence that if one of your workers is injured on the job they won't be held liable.

Most direct insurers usually offer Listed Events only as standard. While it’s cheaper, it can also leave you exposed when something unexpected goes wrong. With a Listed Events policy, your insurance will only respond to specific events, and if the damage doesn’t fall under one of these predefined events, it may not be covered. Accidental Damage provides broader protection. It includes everything covered under Listed Events, plus unexpected, unintended, and unforeseen damage.