Posted on 30 Jul 2025

Public Liability vs. Workers Compensation: Know the Difference & What You Can Claim

Who is covered by workers compensation?

These people are generally covered by workers compensation:

Full-time, part-time, and casual employees.
Apprentices and trainees.

Who isn’t covered by workers compensation?

Across Australia, these people are usually not covered by workers compensation:

Independent contractors: generally not covered unless they’re a ‘deemed worker’, which means the law treats them as an employee for workers compensation purposes. Deemed workers usually have limited employers, more regular hours, and stricter supervision than other contractors.
Sole trader: can’t claim workers compensation for themselves, but they’re required to take out workers comp insurance for any employees.
Volunteers: most volunteers aren't covered unless specifically included in a policy.
Company directors: not always covered; it must be explicitly included in the policy.
Partners in a partnership: not treated as employees and are typically excluded.
Gig workers: people who work for platforms like Uber or Deliveroo may not qualify as employees.
Self-employed ABN holders: need their own personal injury or income protection cover.

If you’re injured while working in any of the above roles, it’s unlikely you can claim workers comp. However, you may have a public liability claim if someone else’s negligence caused your injury.

To find out what claims you qualify for, reach out to our expert lawyers. Your first consultation is completely free.

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When can I make a public liability claim?

While workers compensation only covers employees injured on the job, public liability insurance protects anyone injured on public, private, or rental property. This includes contractors and sole traders hurt at work.

However, to make a public liability claim, you must prove that someone else’s negligence caused your injury. This involves meeting four criteria. To show you how this works, we’ll use the example of a contractor slipping on exposed wiring at a building site.

Anyone who occupies a store, building, or other premises has a general duty of care to people entering the premises. This means they’re legally obligated to ensure the safety and well-being of those individuals. For example, a company managing a building site owes a duty of care to all contractors hired to work there.

You’ll need to determine when the hazard appeared and how long it was left before being cleaned up, repaired, or removed. Common hazards include slippery surfaces, uneven steps, torn carpet, loose tiles, and cracked footpaths.

If the responsible person knew about the hazard and failed to act, that’s a strong case. If they didn’t know, you must prove they ought to have known.

In our example, if the exposed wiring was left unattended for hours and the contractor slipped on it, they may have a claim. But if they tripped moments after the wires were placed there, it may be harder to prove negligence.

You’ll need to show that your injury was directly caused by the failure to fix the hazard within a reasonable time. This is known as the ‘but for’ test — as in, but for the site manager’s failure to remove the wires, the contractor wouldn’t have been injured.

Finally, you must show that you’ve suffered both an injury and a measurable loss. This may include medical costs, lost income, and pain and suffering (the impact the injury has had on your life).

How much compensation could I get?

The amount of compensation you receive for a work injury depends on a few factors, like the severity of your injury and what type of claim you’re making.

Your weekly workers compensation payment covers lost wages and medical bills. If you’re permanently impaired, you may also receive a lump sum payout.

Basic entitlements

Most workers compensation claims include several basic entitlements:

Weekly payments to cover lost earnings (up to 95% of your pre-injury income).
Hospital and medical expenses.
Rehabilitation, counselling and other support services.
Travel expenses.

Lump sum payments

You may receive an additional lump sum payment if your injury causes long-term issues. To qualify, your level of Whole Person Impairment (WPI) must be assessed. This assessment is carried out by an independent medical professional who evaluates how your injury affects your body and your ability to live and work — both now and into the future.

In many states, there’s a minimum WPI threshold you must meet before you can access a permanent impairment payout:

State	Minimum WPI threshold
New South Wales	11%
Victoria	• Spinal injuries: 5% • Other physical injuries: 10%
Queensland	0%
South Australia	5%
Western Australia	0%
Tasmania	5%
Northern Territory	5%
Australian Capital Territory	0%

Let’s say you suffer a lower back injury at work in NSW. Once your condition is stable (meaning it’s not expected to improve with further treatment), you’ll undergo a Whole Person Impairment (WPI) assessment.

In this scenario, your WPI is assessed at 28%. Since that’s well above the 11% threshold required in NSW, you’ll be eligible to claim a lump sum payment on top of your weekly workers compensation benefits.

The exact amount you receive depends on your WPI rating and the date of your injury. For example, if your injury occurred between 1 July 2025 and 30 June 2026, you could expect:

WPI	Lump sum payment
11 – 20%	$29,510 – $64,250
21 – 30%	$68,110 – $102,850
31 – 40%	$109,030 – $166,180
41 – 50%	$172,530 – $229,680
51 – 60%	$317,800 – $405,790
61 – 70%	$493,770 – $581,760
71 – 74%	$669,750
75 – 100%	$757,760

Want to learn more about how WPI works and what it could mean for your workers compensation claim? Check out our complete guide to permanent impairment lump sum payments.

The amount of compensation you receive for a public liability claim depends on the severity of your injury and how it affects your day-to-day life. Depending on your situation, your settlement may cover:

Lost income and superannuation: including both past and future losses.
Care and support: this covers professional care as well as unpaid help from family or friends, including if you can no longer care for a child or other dependent.
Pain and suffering: compensation for the physical and psychological impact of your injury.
Other injury-related expenses: such as medical bills, travel costs, and any necessary modifications to your home or vehicle.

Pain and suffering compensation (also known as ‘non-economic loss’) is harder to calculate than things like medical bills or lost income. That’s because it’s based on more personal factors, like how much your injury has affected your happiness, comfort, and overall quality of life.

As a result, you could get a substantial lump sum — but in most states, you’ll need to meet a minimum injury threshold first. This is usually assessed by an independent medical specialist, who rates your level of permanent impairment. Depending on where you live, this is called a Whole Person Impairment (WPI) or Injury Scale Value (ISV) rating.

Generally, the higher your rating, the higher your compensation — although most states also have maximum payout caps.

See the table below for injury thresholds and payout limits in your state.

State	Requirements for claiming non-economic loss	Maximum compensation for non-economic loss
NSW	Your injury must be assessed at over 10% WPI.	$654,000
Victoria	You must have either: • 30% WPI or • A serious injury certificate from the Transport Accident Commission	$663,580
Queensland	You must have an ISV of 1 or higher.	$456,950
South Australia	You must have an ISV of 11 or higher.	$405,780
Western Australia	• Your injury must be assessed at over 5% Whole Person Impairment (WPI), and • Your claim must be worth over $25,500. This amount increases every year with inflation.	$485,000
Tasmania	Your claim must be worth more than $7,000. This minimum value increases every year due to inflation.	No cap on damages.
ACT	No requirements for claiming non-economic loss.	No cap on damages.

Keep in mind: pain and suffering is just one type of compensation available in a public liability claim. Your full payout also covers things like lost income and medical bills. Depending on your circumstances, you may receive more for these ‘economic’ losses — especially if your injuries are serious or your pre-accident income was high.

Want to know what your claim could be worth? Get in touch for a free consultation. Our lawyers will listen to your story and explain what you’re entitled to.

Public liability vs. workers compensation: key differences

Here’s a summary of the key differences between public liability and workers compensation claims. If you’re still unsure what you qualify for (or you’d just like to chat to a real person about your options), get in touch with us now.

	Workers Compensation	Public Liability
Who can claim	Employees injured at (or because of) work.	Non-employees (e.g. contractors or sole traders) injured due to someone else’s negligence
Who’s responsible	Employer	Person, business, or organisation responsible for the injury
Type of injury covered	Physical or psychological injury or illness related to work	Physical or psychological injury caused by someone else's negligence
What compensation includes	- Weekly payments for lost income - Medical & rehab costs - Lump sum for permanent impairment	- Medical expenses - Lost income - Pain and suffering - Ongoing care needs
Insurance provider	Workers compensation insurer (via employer)	Public liability insurer (via the responsible party)
Need to prove fault?	No — it’s a no-fault scheme	Yes — must prove someone else's negligence caused the injury
Legal process	Lodged through a government or insurer claims process	Lodged as a civil claim (may involve court or settlement negotiation)

Could I have both claims?

You may be eligible for both a WorkCover and a public liability claim if:

You’re an employee injured at work, and
The injury was caused by a third party’s negligence, e.g. a subcontractor, delivery driver, equipment supplier, or building site manager.

Let’s use a real-world example to show how this overlap could work.

Say you’re a warehouse worker employed by a logistics company. While unloading a delivery, you trip on a poorly secured ramp set up by a subcontracted delivery driver.

In this case, you’d likely qualify for workers compensation through your employer’s workers compensation insurance. But because your injury was caused by the negligence of a third party (the delivery contractor), you could also pursue a public liability claim against their company for additional damages like pain and suffering or future loss of earnings.

Why is expertise vital for WorkCover and public liability?

Workers compensation and public liability might seem straightforward — but in reality, these claims can quickly become legally complex. This is especially true if you’re making both claims or trying to prove that multiple parties were responsible for your injury. That’s where an expert lawyer can make all the difference.

Here are just some of the ways legal expertise can strengthen your claim:

Identifying every responsible party: one of the most challenging parts of these claims is working out who may be legally responsible for your injury. It’s not just about what your employer did or didn’t do, but also the role of third parties, subcontractors, labour hire companies, or site operators. A skilled lawyer can review all contractual relationships and duties involved, and help you build a strong case against each responsible party.
Engaging the right experts: to prove negligence, you need credible, independent expert evidence. These experts can help determine whether someone’s actions fell below an acceptable standard, and whether that failure directly caused your injury. A good lawyer knows which experts to engage, how to brief them properly, and how to present their findings persuasively.
Translating your experience into claimable losses: unlike medical expenses or lost income, compensation for pain and suffering is much more subjective. An expert lawyer knows how to translate your personal and medical history into clear, claimable ‘losses’, showing exactly how the injury has affected your life.

What situations can I claim for?

We’ve spent over 25 years helping injured workers secure the compensation they deserve. Below are some of the most common situations we’ve successfully claimed for, including both workers compensation and public liability claims.

Workers compensation claims

Injuries caused by a single incident, e.g. breaking your back after falling from scaffolding.
Psychological injuries caused by work-related stress, bullying, or harassment, e.g. anxiety, depression, or PTSD.
Injuries sustained while travelling to or from work (in certain circumstances).
Repetitive strain injuries (RSIs) from ongoing tasks like lifting, typing, or using machinery.
Hearing loss caused by long-term exposure to loud noise at work.
Illness or disease caused by workplace dust exposure, e.g. asbestos-related conditions.

Public liability claims

If you’re a contractor, sole trader or other non-employee, these are some of the most common situations where you can claim:

Slipping on a wet floor with no warning signs.
Tripping over exposed wiring or clutter.
Tripping or falling due to uneven flooring, paving or stairs.
Being struck by falling objects due to poor safety procedures.
Being injured by faulty or poorly maintained equipment.

Do I need a lawyer for my claim?

While you can make a claim on your own, it’s always worth getting expert legal advice before you start — especially if you’re eligible for more than one type of compensation.

Managing multiple claims at once can get complicated fast, as each has different rules, insurers, and evidence requirements.

Here’s how our specialist personal injury lawyers can help with your claim:

Free claim assessment: we’ll listen to your story and explain which type of claims you’re eligible for.
Clear advice on your options: we’ll explain the pros and cons of each type of claim, including how they work, what you could receive, and any limitations — so you can make informed decisions from day one.
Compile strong evidence: whether you need to prove someone else’s negligence or meet an impairment threshold, we gather expert medical and factual evidence to support your case.
Handle negotiations and push for fair compensation: we take care of all negotiations and paperwork on your behalf, and if the insurer tries to reduce or deny your claim, we push back hard.
Identify any additional entitlements: if you're eligible for other types of compensation (like a TPD claim through your super), we’ll let you know and help you apply, ensuring you don’t miss out on anything you’re owed.

What other claims could I have?

On top of your WorkCover or public liability claim, you could have a Total and Permanent Disability (TPD) claim if your injury causes long-term issues. And if your work injury was caused by your employer’s negligence, you may also be entitled to a substantial payout through a common law damages claim. Let’s explore both in more detail.

Total and Permanent Disability (TPD)

If your injury has left you permanently unable to return to work, you may be eligible for a Total and Permanent Disability (TPD) payout through your super. This lump sum benefit is designed to support your long-term financial needs.

Most TPD payouts range from $60,000 to $450,000, but some policies offer significantly more — even over $1 million — depending on your level of cover and the severity of your condition.

To find out what you may be entitled to, get in touch with our experienced TPD lawyers. We’ll take the time to understand your situation, review your super policy, and clearly explain your options.

Common law damages

If your injury was caused by poor safety standards, inadequate training, or another form of employer negligence, you may be eligible to make a common law damages claim. It’s also known as ‘work injury damages’ in NSW.

Unlike standard workers compensation payouts, common law claims can lead to substantial lump sum settlements.

In addition to your usual workers compensation benefits, a successful common law claim may also cover:

Future loss of earnings and superannuation.
Ongoing medical and rehabilitation costs.
Pain and suffering (depending on your state).

Keep in mind: Some states require a minimum Whole Person Impairment (WPI) rating before you can pursue a common law claim. Check the table below to see the WPI threshold in your state.

State	WPI threshold
New South Wales	15%
Victoria	30% or pass a ‘serious injury’ test
Queensland	0%
South Australia	30%
Western Australia	15%
Tasmania	20%
Northern Territory	0%
Australian Capital Territory	0%