Man smiling with hard hat

sole trader and partnerships

If you’re a sole trader/proprietor or member of a partnership, you’re not a worker in your own business and can’t take out workers compensation insurance to cover yourself.

Sole Traders/Proprietors, or members of a partnership are not considered as workers. Hence they cannot take out workers compensation insurance to cover themselves for injuries.

For sole traders and partnerships, a suitable alternative may be a personal accident and illness policy, or an income protection insurance policy. However, it's not a legal requirement to take out one of these policies.

If you’re not an exempt employer you will still need to take out a workers compensation policy to cover any workers you might have.

If you’re hired as a worker, then your employer may need to take out a workers compensation policy to cover you.

examples

Barry the electrical contractor

Barry operates an electrical contracting business. Barry is a sole trader with no workers. Barry is not eligible to take out workers compensation insurance.

Tilers Steve and Jason

Steve and Jason are tilers who conduct their business as a partnership and employ an apprentice. They are required to take out workers compensation insurance to cover the apprentice. The workers compensation insurance does not cover Steve and Jason.