What changes when you hire your first employee?
Transitioning from solo to a team is a significant step. Here’s what you need to know about Workers’ Compensation, liability changes, and keeping everyone protected.
The moment you hire, Workers' Compensation becomes mandatory
In Australia, if you employ anyone, full-time, part-time, casual, even if they’re family, you must have Workers’ Compensation insurance. There are no exceptions.
Important note — each Australian state and territory has their own arrangements. We can only arrange cover for you in WA, ACT, TAS and NT. For all other states, we can direct you to the right resources.
What Workers Compensation covers
- Medical expenses if an employee is injured at work
- Lost wages while they recover
- Rehabilitation and support services
- Legal costs if an employee sues
What happens if you don’t have it
- Fines up to $55,000 (varies by state)
- Personal liability for all costs if an employee is injured
- Potential prosecution
- You can’t legally employ anyone without it
What else changes when you hire
Covers claims from employees for wrongful termination, discrimination or harassment, unfair dismissal, and workplace disputes.
This isn’t mandatory, but it’s worth considering once you have a team. Employment disputes are common and expensive.
Employee vs. contractor: insurance differences
- Must be covered by Workers Compensation
- Covered under your Public Liability and PI (if policy includes them)
- You’re responsible for their work and actions
Step-by-step: setting up insurance when you hire
Common questions
How much does Workers Compensation cost?
What if I hire a family member?
Can I add Workers Compensation mid-year after I hire?
What if my employee gets injured outside of work hours?
Do I need to tell you every time I hire someone new?
What happens next
As your business matures, the focus shifts from adapting to protecting what you’ve built. More established operations, steadier revenue, and a lower tolerance for risk. That’s when you move from Scale Strong to Stay Protected.