Workers Compensation Insurance for Contractors
Protect Your Business Against Injury
Workers compensation insurance for contractors protects your business and team from the financial impact of work-related injuries or illnesses. It covers medical costs, lost wages, and rehabilitation, helping you meet legal requirements while keeping your operations running smoothly. At Contractor Cover, we guide contractors through these needs with clear advice and fast setup, ensuring compliance across Australia.
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Instant, Affordable Cover
20+ Years of Experience
270k+ Businesses Covered
What Does Contractor Workers Compensation Insurance Include?
Our policies provide clear protection tailored to contractors and tradies. Here is what you typically get:
- Weekly wage replacement – Up to 100% of pre-injury earnings (state caps apply) while the worker is off. In Western Australia, this applies for the first 26 weeks, then steps down.
- All medical and hospital bills – GP visits, specialists, surgery, X-rays, and medications. Unlimited in most cases; in Western Australia, capped at 60% of the general maximum limit (around $163,000, but you can increase this).
- Rehab and return-to-work support – Physio, chiro, occupational therapy, gym programs, modified duties, and equipment like braces. Rehab comes with a capped limit.
- Travel costs for treatment – Fuel, public transport, or taxis to appointments at approved rates to support recovery.
- Lump sum payments for permanent injury – Calculated by impairment percentage (for example, lost finger, reduced hearing, or scarring) after maximum medical improvement and independent assessment.
- Common law claims (where allowed) – Legal costs and settlements if negligence is proven to protect your business balance sheet. Legal costs are generally covered in Western Australia, even before common law.
- Death benefits – Funeral costs plus weekly payments to dependants if the worst happens (relationship must be established and benefits are capped).
Optional Extras
Tailor your workers compensation insurance for contractors with these add-ons:
- Journey cover – For injuries while travelling to or from the site.
- Principal indemnity – Protects you when hiring uninsured subcontractors.
- Stress/mental health – Counselling and time off (strict tests apply).
How Much Does Workers Compensation Insurance Cost for Contractors?
Premium = Wages × Industry Rate × Experience Factor
The final cost depends on your wages, trade risk, claims history, and safety record. Rates vary by state. We arrange cover in WA, ACT & NT.
Low-Risk Contracting
(e.g., IT contractor, project manager, business consultant)
$100k wages = $1,200–$2,200/year
High-Risk Contracting
(e.g., builder, electrician, roofer, plumber)
$100k wages = $2,500–$5,500/year
These are estimates only. Your actual premium will be tailored to your business. Contact us for a free, no-obligation quote specific to your circumstances.
Why Choose Our Workers Comp Insurance Experts?
We know contractors need reliable cover without the hassle. That is why over 270,000 Aussie small businesses trust us.
- Contractor-Specific Knowledge: Our brokers understand tradie risks and jobs. Get faster service, practical advice, and cover that suits your work. Check plumbers insurance or electrician insurance.
- Simple and Fast: Grab a quote online, set up cover, and get documents in minutes. Want to chat? Our team picks up the phone.
- Backed by Experience:
We are part of Elliott Insurance Brokers with over 20 years helping contractors. Enjoy personal service with solid support. - Sustainable and Ethical: As a carbon-neutral business, we look after the planet while protecting your crew.
Note: We are only licensed to provide workers compensation insurance in Western Australia, ACT, and the Northern Territory. Call 1300 738 503 for quotes in these states or help in other states.
Our Quick & Simple Workers Comp Quoting Process
Getting the right cover in Western Australia is simple with Contractor Cover. Follow these three steps and protect your crew in minutes.
Enter Your Details
Fill out our online underwriting questions and submit them to our broking team.
Contact Us Directly
Prefer to talk? Call our WA-licensed brokers for fast, friendly advice tailored to your trade and team.
Get Covered
Receive your policy and Certificate of Currency instantly. We handle WorkCover WA registration and ongoing support.
What States Require Workers Compensation Insurance for Contractors?
As an employer hiring contractors, you must hold workers compensation insurance if they are “deemed workers” under state rules. This is mandatory in every Australian state and territory for businesses with employees or deemed workers.
We arrange cover in WA, ACT, and NT. For these areas, get a quote online or call 1300 738 503. For other states, we provide free guidance and connect you with licensed brokers.
Western Australia
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers if the work is not part of their regular business. The regulator is WorkCover WA.
If you’re a sole trader, think about personal accident insurance to help keep money coming in if you’re off the tools.
New South Wales
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers if you control the work or labour makes up more than 50% of the contract value. The regulator is SIRA.
Victoria
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers if you control the work or they earn 80% or more of their income from you. The regulator is WorkSafe VIC.
Queensland
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers under a control test and this includes gig workers. The regulator is WorkCover QLD.
South Australia
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers if the contract is labour-focused; sole traders can elect to be covered. The regulator is ReturnToWork SA.
Tasmania
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers if you control or integrate them into your business. The regulator is WorkSafe TAS.
Australian Capital Territory
Workers compensation is mandatory for all employers with staff. Labour-only contractors are included as deemed workers. The regulator is WorkSafe ACT.
Northern Territory
Workers compensation is mandatory for all employers with staff. Contractors are deemed workers under a PAYG test. The regulator is NT WorkSafe.
How to Tell if Your Contractor is a Deemed Worker
Not sure if you need to cover a subcontractor? Run through this quick checklist. If the answer is “yes” to most questions, they’re likely a deemed worker and must go on your policy. We review your contracts for free to confirm.
- Do you set their hours, tools, or work location?
- Is labour more than 50% of the contract value?
- Can they send a substitute (someone else to do the job)?
- Do they use your branding, uniforms, or systems?
- Is the work not part of their regular business (e.g., a plumber fixing your office)?
State-specific guides:
- WA, ACT & NT – we check for you and handle registration.
- NSW: SIRA online decision tool
- VIC: WorkSafe contractor tool
- QLD: WorkCover contractor guide
- WA: WorkCover WA worker definition
Tip: Ask every sub for their own policy first. If they don’t have one and fail the test, add them to yours to stay compliant.
About Us
Contractor Cover is the one-stop insurance shop for contractors across Australia.
We understand that contractors require targeted business insurance which offers both value for money and optimal cover. With that in mind, we’ve packaged the most common insurances the average contractor needs into a single policy. This means that you don’t need to waste your time contending with multiple policies – everything you need is included in one convenient package.
Speak with our team today for more information or fill in our easy online quote form.
270k+ businesses covered
20+ years of experience
Instant, affordable cover
FAQs
What is workers compensation insurance?
Mandatory protection for your business when anyone working for you (staff or deemed contractors) is injured or falls ill due to work.
It covers:
- Medical & hospital bills
- Weekly wage replacement (up to 95% in most states)
- Rehabilitation & return-to-work programs
- Legal defence if sued
- Lump-sum payments for permanent impairment
Why employers need it:
- Legal requirement in every state for payroll >$0
- Fines for non-compliance: $50,000–$179,000
- Personal liability if uninsured – you pay claims from your pocket
Why do contractors need workers compensation insurance?
Mandatory protection for your business when anyone working for you (staff or deemed contractors) is injured or falls ill due to work.
It covers:
- Medical & hospital bills
- Weekly wage replacement (up to 95% in most states)
- Rehabilitation & return-to-work programs
- Legal defence if sued
- Lump-sum payments for permanent impairment
Why employers need it:
- Legal requirement in every state for payroll >$0
- Fines for non-compliance: $50,000–$179,000
- Personal liability if uninsured – you pay claims from your pocket
Do I need workers compensation insurance for contractors I hire?
Yes – if they are “deemed workers” under state law.
Most states treat contractors as employees when:
- You control their hours, tools, or work method
- Labour is >50% of the contract value (NSW, VIC, QLD)
- They earn 80%+ of income from you (VIC)
- Work is not part of their regular business (WA)
What to do:
- Ask every contractor for their Certificate of Currency (proof of own policy).
- If none, add them to your policy as a deemed worker.
- We review contracts free – send us the agreement and we confirm status in minutes.
Do I need workers compensation insurance for subcontractors I use?
Yes – same rules apply as contractors.
Subcontractors are your responsibility if they fail the state’s contractor test.
Common red flags:
- You supply tools or uniforms
- They invoice for hours, not results
- No ABN or GST registration
Best practice:
- Require subs to email their workers comp certificate before starting.
- Keep records for 7 years (audit proof).
- If they don’t have cover, add them to your policy – we handle payroll declarations.
Do independent contractors need workers compensation insurance?
Only if they hire staff or are deemed workers by you.
A true independent (own tools, multiple clients, results-based pay) does not need it. But you must cover them if state rules classify them as your worker.
| True Independent | Deemed Worker |
|---|---|
| Sets own hours | You set hours |
| Own tools/vehicle | You supply tools |
| Multiple clients | 80%+ from you |
| Invoices GST | Invoices hours |
Do subcontractors need workers compensation insurance?
Same rules as independent contractors.
- No staff = no requirement (but you may need to cover them).
- Have staff = must have own policy.
- Deemed by you = you cover them.
Verification tip: Ask for:
- ABN lookup (public)
- Certificate of Currency
- Invoice sample (shows GST/results)
We check all three free when you send a quote request.
Do sole traders need workers compensation insurance?
No – if working completely alone.
Yes – the moment you hire anyone, including:
- Casual staff
- Family members (paid)
- Deemed contractors
Optional protection:
- Personal accident & illness cover – pays you if injured (not mandatory but recommended).
- Available from $300/year.
Do self-employed people need workers compensation insurance?
No legal requirement if no employees.
But you become liable if:
- Hiring staff (even part-time)
- Deemed a worker by a principal contractor
Smart alternative:
- Income protection – replaces 75% of income if sick/injured
- Personal accident – lump sum for broken bones, hospital stays
- Trauma cover – pays on diagnosis (e.g., cancer)
We compare all three – no obligation.
Do self-employed people need workers compensation insurance?
No legal requirement if no employees.
But you become liable if:
- Hiring staff (even part-time)
- Deemed a worker by a principal contractor
Meet Your Insurance Team
At Contractor Cover, we’re proud to have a dedicated executive team that brings decades of experience, strategic insight, and an unwavering commitment to supporting Australian contractors.
John Elliott
CEO
Rachael Milne
Chief Financial Officer
Kristofer Wright
Head of Technology
Tim Stingers
Insurance Broking Team Leader