Hiring your first employee? This insurance is mandatory.

Workers Compensation is legally mandated insurance that covers:

Medical and treatment costs:

• Doctor visits, specialist appointments, scans, and tests
• Hospital treatment and surgery
• Prescription medications
• Physiotherapy, rehabilitation, and occupational therapy
• Mental health treatment (psychology, psychiatry, counselling)
• Travel expenses to medical appointments

Lost wages (weekly payments):

• Weekly payments while your employee can't work (typically 95% of their pre-injury wage for the first 13 weeks, then reduces)
• Continues until they can return to work or reach maximum compensation
• Covers partial incapacity (if they return to lighter duties at reduced hours)

Permanent impairment:

• Lump sum payments if the injury causes permanent disability
• Compensation for loss of earning capacity
• Pain and suffering compensation (varies by state)

Return to work support:

• Modified duties and workplace adjustments
• Retraining if they can't return to their original role
• Case management and rehabilitation coordination

Death benefits:

• Compensation to dependents if a workplace injury causes death
• Funeral expenses
• Ongoing support payments to spouse and children

Legal costs:

• Your legal defence if claims are disputed
• Investigation costs for fraudulent claims
• Administrative costs for claim management

You need this from Day 1 if:

• You hire your first employee (full-time, part-time, casual, all must be covered)
• The day before they start work (not after)
• You're paying anyone wages (not contractors, they're different)

Optimise your Workers Comp costs:

• Review your industry classification (miscoded industries cost more)
• Implement workplace safety programs (fewer injuries = lower premiums)
• Manage claims proactively (quick return-to-work reduces costs)
• Shop around at renewal if you're in an underwritten state (WA, TAS, ACT, NT)
• Consider self-insurance if you're large enough (rare for small businesses)