Business insurance. Personal attention.

Insurance, explained

Employer liability

Employer liability is an employer’s potential legal responsibility connected with workers and employment. Its scope depends on the alleged harm, employment relationship and applicable Australian jurisdiction.

Business owner discussing insurance documents with an adviser
BAU Risk Services — insurance brokerage

01 / The meaning

What it means.

Workplace injury, employment disputes and health and safety enforcement are different exposures. Workers compensation arrangements address defined employment injuries and can interact with employer liability claims under jurisdiction-specific rules. Employment practices cover deals with different allegations, such as discrimination or wrongful termination. Public liability insurance should not be assumed to replace workers compensation or cover every injury to someone working for the business.

Identify who is doing the work and under what arrangement. Contractors, labour-hire workers, apprentices, volunteers and company directors can be treated differently across schemes and policies. The written contract is relevant but may not settle every classification question. Keep engagement records, work descriptions and incident details. If an injury crosses state borders or involves several businesses, obtain advice on the applicable scheme and responsibilities promptly.

02 / Put it in context

A practical example.

Hypothetical example

Hypothetical example: a labour-hire worker is injured at a warehouse. The host and labour-hire business review the incident, their contracts and relevant scheme rules rather than assume one party’s general liability policy resolves every obligation.

This example illustrates the term. It does not predict a claim outcome.

03 / Read the detail

What to check.

04 / Start a useful conversation

A question for your broker.

Which employer obligation and insurance arrangement relate to this worker and alleged harm?

Further reading

Read the source guidance alongside the relevant policy wording.

General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.

Let’s start with your business

A clearer conversation
about your insurance.

Tell us what you do, what has changed and what you need to understand.