Workers Compensation (Sole Trader): Who Qualifies and What You Get
Learn how self-employed individuals can opt-in for personal injury cover to receive income replacement if they are unable to work due to injury.
This scheme allows self-employed individuals to opt-in for personal injury cover to protect their livelihood.
Who it's for
This scheme is designed specifically for self-employed individuals who operate as sole traders. While many workers receive insurance through an employer, this option is for those who work for themselves and wish to choose to opt-in for personal injury cover to ensure they are not left without financial support if an accident occurs during their work.
What you get
The primary benefit of this coverage is income replacement. If you suffer a workplace injury that prevents you from performing your specific professional duties—such as being unable to perform the physical tasks required by your trade—this scheme provides financial assistance. This helps bridge the gap in your earnings, providing a level of income protection while you are recovering and unable to earn your usual income.
What it costs you
To maintain this coverage, you must pay an annual premium. The amount you are required to pay is not a fixed flat fee; instead, the cost is calculated based on your estimated income for the year. Because your earnings may fluctuate as a sole trader, the premium is tied to what you expect to earn, ensuring the cost is scaled to your specific business circumstances.
The catch to know
The most important thing to understand is that sole traders are not automatically covered by standard workplace insurance laws in the same way that regular employees are. While an employer is required to provide cover for their staff, a self-employed person must take the initiative to set up this protection themselves. If you assume you are covered because you are working, you may find yourself without any financial safety net when you need it most.
How to apply
- Review your business records to determine your estimated annual income.
- Contact your relevant State or Territory WorkSafe Authority to discuss the opt-in process.
- Provide your estimated income details to the authority to receive a premium quote.
- Pay the required annual premium to ensure your coverage is active.