Who Pays For Workers Compensation?

Quick answer

Your employer’s insurer usually pays for workers compensation, but this can be different depending on the type of insurer or insurance policy. If your employer doesn’t have workers compensation insurance, you can still be eligible for weekly payments.

In depth answer

In Australia, workers compensation is a mandatory insurance scheme that supports employees who suffer a work-related injury or illness. Employers are legally required to have workers compensation insurance for their employees.

Who pays for workers compensation?

Employers are responsible for paying the workers compensation insurance premiums, but the actual weekly benefits you receive are typically paid by the insurance company. This ensures you get the support you need without directly impacting your employer’s finances.

In some cases, you may be paid through a self-insurance policy or a specialised insurer.

What if my employer doesn’t have workers compensation insurance?

As discussed, it’s usually illegal for your employer to not have workers compensation insurance. However, if you’re injured at work and your employer is uninsured, there are two main options available:

  1. Employer liability: Your employer may be held directly liable for your medical expenses, lost wages, and other related costs.
  2. Compensation from your state regulator: many states and territories have uninsured employer funds or schemes that provide benefits to workers whose employers are uninsured. This means you can still receive workers compensation payments. However, it’s likely your employer will still face penalties and be required to reimburse the fund for your workers compensation payout.

For more details on this process, see your state workers compensation regulator:

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