If you're an employer in Western Australia, you’re legally required to hold Workers’ Compensation Insurance to protect your employees from injury or illness that occurs as a result of their employment. In WA, “remuneration” includes any form of payment or allowance made to or on behalf of a worker, whether it’s cash, non-cash or in-kind benefit.

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.

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.

Workplace injuries can happen in any business — and when they do, it's critical to act quickly and correctly to look after your workers and meet your legal obligations. Firstly, make sure the worker gets medical attention. Secondly, complete a claim form, obtain a First Medical Certificate and sign a Broker Consent form. The employer must provide the broker with an injury report and the broker will lodge the claim with the workers' compensation insurer.