CompareAll Business InsuranceCompare Business InsuranceOverseas Visitor CoverAll LoansCompare Loans
Every employer in Western Australia must hold workers compensation insurance for anyone the law treats as a worker, and you buy it from one of the private insurers licensed by WorkCover WA. WorkCover WA itself is the regulator: it doesn't sell policies, but it sets recommended premium rates for each industry every financial year, and for 2026/27 the average recommended rate is 1.931% of wages.
Because the insurers compete, WA is one of the few states where you can shop around for workers comp. This page covers who the licensed insurers are, which workers and contractors you must cover, how your premium is worked out, the options for working directors, and what happens if you don't insure.
By Better Rate Mate Editorial Team ยท Last reviewed
| Western Australia | |
|---|---|
| Regulator | WorkCover WA |
| Who insures | Private insurers licensed by WorkCover WA (7 listed), plus the Insurance Commission of WA for public authorities, and approved self-insurers |
| Can you choose your insurer? | Yes. You can buy from any licensed insurer, directly or through a broker |
| Who must insure | Every employer, for anyone the Act defines as a worker, including cover for common law claims |
| Wage threshold | None published. Cover is needed from the first worker |
| How premiums are set | WorkCover WA publishes a recommended rate for each industry class each year; insurers may discount or surcharge it |
| Average recommended rate | 1.931% of wages for 2026/27 (1.823% in 2025/26) |
| Recommended minimum premium | $325 for 2026/27, all classes |
| Sole traders | Generally can't cover themselves; working directors can be covered at the company's option |
| Penalty for not insuring | Fines of up to $10,000 per worker, plus an amount equal to avoided premiums for up to five years |
| Law | Workers Compensation and Injury Management Act 2023 |
WA uses a private insurer model. Insurers must be licensed by WorkCover WA to write workers compensation, and you can take out a policy with any of them, compare their quotes, or use a broker to do it for you. At the time of writing WorkCover WA lists seven licensed insurers for private employers.
Large employers that meet WorkCover WA's criteria can instead be approved as self-insurers and manage their own workers' claims, but that is not a realistic option for a small business.
| Insurer (as listed by WorkCover WA) | Note |
|---|---|
| Allianz Australia Insurance Ltd | |
| AAI Limited trading as GIO | |
| Guild Insurance Ltd | |
| CGU Australia Pty Ltd trading as CGU Workers Compensation | |
| CGU Australia Pty Ltd trading as WFI | |
| QBE Insurance Australia Ltd | |
| Zurich Australian Insurance Ltd | |
| Insurance Commission of WA | Licensed for public authorities only |
WorkCover WA's rule is simple: you must have workers compensation insurance for anyone you employ who the legislation defines as a worker, and the policy must include cover for claims at common law. There is no small-wages exemption. Full-time, part-time and casual employees are all workers.
Contractors can be workers too. Under the Act's extended definition, a contractor can be treated as your worker if they contracted to do the work themselves, aren't carrying on their own regular trade or business, don't sublet the contract, and, if they employ someone, still do part of the work personally. An ABN doesn't settle the question. If you engage contractors regularly, work through those tests or ask your insurer, because an uninsured worker becomes your liability.
Each year WorkCover WA publishes a recommended premium rate for every industry class. The classes are Premium Rating Codes based mainly on the ANZSIC 2006 industry classification, so the first step is to make sure your business is in the right class. The 2026/27 rates apply to policies starting from 4pm on 30 June 2026.
The recommended rate is a starting point, not a price. WorkCover WA says insurers aren't required to charge it and may apply discounts or loadings based on your claims experience, and its actuarial report notes insurers can discount or surcharge the recommended rate by any amount. Your premium is essentially your declared wages multiplied by the rate your insurer applies. WorkCover WA also sets a recommended minimum premium, which is $325 for 2026/27.
The average recommended rate across all industries is 1.931% of wages for 2026/27, up from 1.823% in 2025/26. As an illustration of the method only: at exactly the average rate, every $100,000 of wages would attract about $1,931 of premium. Your own industry rate may be well above or below the average, and your insurer's adjustment moves it again, so get quotes rather than relying on the average.
| Financial year | Average recommended rate (% of wages) |
|---|---|
| 2026/27 | 1.931% |
| 2025/26 | 1.823% |
WorkCover WA says individual workers generally can't cover themselves for workers compensation, even if they're self-employed with an ABN. If you're a sole trader or partner, the scheme won't pay for your own injury; look at personal accident and illness or income protection cover instead (see insurance for sole traders).
The exception is a working director. If your business is a company, it can choose to cover its working directors under its workers compensation policy. It's optional, so decide deliberately and tell the insurer. Non-working directors and directors of public companies are excluded.
Running a business with workers and no policy is an offence. WorkCover WA says an uninsured employer can face fines of up to $10,000 per worker, plus an amount equal to the premiums avoided for up to five years back, and continuing uninsured after a conviction is a further offence for every week it continues. If an uninsured worker is injured, the employer is also exposed to the cost of the claim.
Each state and territory runs its own scheme, and an employer registers where its workers are based. If you employ people in more than one state, check each scheme, or see the eight schemes side by side.
Yes. Every employer in Western Australia must have workers compensation insurance, including common law cover, for anyone the Act defines as a worker. There is no wage threshold.
No. WorkCover WA is the regulator. It licenses insurers, publishes recommended premium rates and oversees the scheme, but you buy your policy from a licensed private insurer.
It depends on your industry and wages. WorkCover WA's average recommended premium rate for 2026/27 is 1.931% of wages, with a recommended minimum premium of $325, but each industry class has its own rate and insurers can discount or load it based on your claims experience.
Not for themselves. WorkCover WA says individuals generally can't insure themselves, even with an ABN. A sole trader who employs anyone, including an apprentice, must insure those workers.
Working directors can be, at the company's option. Non-working directors and directors of public companies are excluded.
Some are. A contractor can fall within the Act's extended definition of a worker if they contracted to do the work personally, aren't running their own regular trade or business, and don't sublet the work. Check each arrangement.
Better Rate Mate is an independent comparison site. We are not a workers compensation insurer, agent or regulator, and this page is general information for employers, not advice. For a policy, a premium or a claim, contact the scheme or a licensed insurer directly. If you have been injured at work, your employer's insurer and the regulator listed above can explain your entitlements.
