Engaging contractors is a normal part of running a business – but it also comes with risk. One of the most important (and often overlooked) steps is confirming whether your contractor has workers compensation insurance in place.
The good news? There are free online tools that make this quick and easy to check.
Why This Matters
If a contractor you engage doesn’t have the appropriate workers compensation cover, you could be exposed to:
- Unexpected claims
- Liability for injuries
- Additional premiums or penalties
In some cases, the contractor may even be deemed a worker for workers compensation purposes – meaning you could be responsible.
How to Check
Each state and territory in Australia provides an online lookup tool where you can:
- Search a business by name or ABN
- Confirm if a workers’ compensation policy is active
- View basic policy details (depending on the state)
These checks typically take less than a minute and can save significant issues down the track.
The NSW lookup tool can be found here: https://www.icare.nsw.gov.au/employer-lookup
When Should You Check?
It’s best practice to check:
- Before engaging a new contractor
- At the start of each financial year
- If a contract arrangement changes
Don’t assume that because a contractor has ABN or invoices you, they have the right cover in place.
Important Tip
Workers compensation rules vary between states, and contractor vs employee classifications can be complex. Even if a contractor has their own policy, it doesn’t automatically remove your obligations.
Keep a Record
Always retain evidence of your checks, such as:
- Screenshots of the lookup result
- Copies of certificates of currency
- Notes on when the check was completed
This documentation can be critical if questions arise later.
Key Takeaway
A quick online check can help you avoid costly mistakes. Verifying a contractor’s workers compensation cover should be a standard step in your onboarding process – not an afterthought.
Need Help?
Unsure whether your contractors are correctly classified or properly covered? Our team can help you review your setup and ensure you’re meeting your obligations while protecting your business.
Get in touch today.
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