Do you know what’s common between a large-scale business with hundreds of employees and a small-scale business?

Well, they both need worker’s compensation insurance for their employees.

But first, what exactly is worker’s compensation insurance?

Let’s suppose one of your employees faces an injury at work. They can file a workers’ compensation claim. If you have workers’ compensation coverage (which you typically purchase through an insurance company), then your employee will be able to make a claim.

If the claim is approved, your workers’ compensation policy will pay for the injured workers’ medical bills and rehabilitation, as well as the wages they miss while they recover.

Workers’ compensation insurance is mandatory for all employers in Australia. The employer may be legally uninsured, permissibly self-insured, or illegally uninsured. As a cost of doing business in the state, an employer must pay for workers’ compensation.

If you want to know more about workers’ compensation, you can contact our expert workers’ compensation lawyers, who can guide you on what to do next.

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Do small businesses also need workers’ compensation insurance?

Yes, they do. Small business owners are always looking to save money and boost their profits. Workers’ compensation insurance, on the other hand, is an area where they should not cut corners.

Workers’ compensation insurance may appear as an unnecessary expense  to some business owners, especially if none of their employees have suffered a severe work-related injury. However, depending on the laws in their state, business owners who do not have workers’ compensation coverage may face fines or even jail time.

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workers' compensation insurance

Here’s what happens if you don’t have workers’ compensation insurance…


Your employee can turn towards the state:

If your company fails to pay workers’ compensation, they can turn to your state for any help. This will help them gain back the lost wages due to injuries, recovery time, or hospital time. In addition, state workers will help them settle their medical bills. Injuries can leave people devastated, and they can make your employee feel frustrated.  If you don’t provide them with worker’s compensation, they can turn towards the state, and honestly, no one wants to fight with the state.

Your employee can seek legal help to get the compensation:


After an injury, every employee has several rights to which they can turn if the company can not compensate them. First, as stated above, they  have the right to file a claim for their  injury with the help of professional lawyers to ensure that everything is done correctly. They will seek a legal way, which can help your company. 

Your employee has the legal right to sue your company for all medical expenses. Because of an exclusive remedy clause, your employee would have been barred from this remedy if you had the insurance.

You can damage your company’s reputation:


If you don’t provide your employees with their due rights, it can damage your company’s reputation. The information could harm public perceptions of the company if it hit major news outlets. Having bad press is the last thing a company can want.

Negative public perceptions may impact the company’s profits and stock prices.

You will have to pay hefty fines: 

Your company might have to pay a fine if you don’t have workers’ compensation insurance. Suppose you face any lawsuit  you have to pay a large sum of money. Even a minor workplace accident can put a small business into severe financial trouble.

If your company must have workers’ compensation insurance and you are operating without it. Then  you may face significant penalties. However, the penalties vary state by state.

Local law enforcement, business regulatory bodies, and government departments that focus on insurance fraud usually enforce worker’s compensation laws.

Contact us now and let us take care of the complexity of insurance companies for you.

Is it worth the risk?

It may be tempting to forego workers’ compensation coverage, especially if your company is struggling financially. It is, however, not worth the risk. You could face legal trouble if you don’t have workers’ compensation.

Failure to carry workers’ compensation insurance can result in criminal charges, fines, and costly litigation.

Understandably, employers in the present time have to face many difficulties, including a bad economy which results in employers finding ways to save money from one another. Still, an employer should never take the risk of avoiding worker’s compensation.


Let us take care of the complexity of insurance companies for you.

United Legal


Worker’s Compensation Lawyers Canberra


For our legal support services, contact us at (02) 6295 2283 

Visit us at

54-56 Townsville St, Fyshwick ACT 2609


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