Workers compensation insurance
Workers Compensation for Barbershops
If someone works for you, you need it, and that includes casual and part-time barbers, apprentices and the person who answers the phone. The only exceptions are a few employers with very small wage bills.
Each state and territory runs its own system, with its own rules on who counts as a worker and how the price of the policy is set. Where you buy the policy depends on where your staff work.
Cover is subject to the policy terms and the insurer's acceptance.
Reviewed by
Founder and Director, Grace Insurance. Diploma in Broking, Fellow CIP. In insurance broking since 1992.
State by state
Workers Compensation by State and Territory
Four places use private insurers
In Western Australia, Tasmania, the Northern Territory and the ACT, you buy workers compensation from a private insurer. The insurer must be licensed or approved by the local regulator, such as WorkCover WA or NT WorkSafe.
Four states run a state scheme
In New South Wales the scheme is icare, in Victoria WorkSafe Victoria, in Queensland WorkCover Queensland and in South Australia ReturnToWorkSA. The scheme sets your premium, the price you pay, and issues the policy.
Your staff's state decides it
You insure in the state or territory where your staff work. Tell us where that is and we will explain your options, and how workers compensation fits with your other shop insurance.
What workers compensation pays for
What Workers Compensation Covers for Barbers
Workers compensation pays an injured employee's wages while they are off work, their medical and rehabilitation costs, and help to get back to work.
Sore wrists and hands
Hours of cutting can lead to repetitive strain injury, pain from the same movement over and over. It can also cause carpal tunnel syndrome, a pinched nerve in the wrist. Injuries that build up over time can be claimed as well as sudden ones.
Back, neck and shoulder pain
Standing all day and leaning over the chair strains the back and shoulders. If a doctor links it to the work, workers compensation can pay for treatment and time off.
Cuts from razors and scissors
If a barber cuts a hand on a razor or scissors and needs stitches, workers compensation can pay for the treatment. It also pays their wages while they are off work.
Skin reactions from products
Dermatitis, an itchy, cracked skin rash, can come from constant hand washing and contact with dyes and chemicals. Staff who get it from their work can make a workers compensation claim.
A slip on clippings
If one of your staff slips on hair on the floor, the claim goes to workers compensation. Public liability only covers people who do not work for you, such as clients.
Deemed workers
Are Chair Renters and Contractors Your Workers?
01Each state has its own test
Each state has its own test, and the label on the agreement does not decide it. Someone you call a contractor or chair renter can count as a deemed worker, a person your state's workers compensation law treats as your worker.
02What counts as a worker in NSW
In NSW, for example, the signs include you directing their work, paying them by the hour or week, or supplying their tools. Check with your state's workers compensation regulator before you rely on the label.
03Cover for your own injury
Workers compensation does not cover you if you are a sole trader. If you rent a chair, personal accident and illness insurance is the cover for your own injury or illness.
Workers compensation cost
What Affects the Price of Workers Compensation?
Your premium, the price of the policy, depends on your wages, your industry rate, your claims record and how accurately you estimate wages. The exact figure is confirmed on your quote, or by the state scheme if you are in one.
Your total wages
Premiums are worked out as a percentage of the wages you pay, so more staff or higher wages mean a higher premium.
Your industry rate
Each system puts your business in an industry class, such as hairdressing, with its own rate.
Your claims record
Past claims can push the premium up, and a clean record helps.
Declaring wages correctly
You estimate wages at the start of the year. The real figure is checked at the end, and the premium is adjusted up or down.
Where we arrange the policy, you can spread the premium with premium funding, where a finance company pays the insurer for you and you repay it weekly, fortnightly, monthly, quarterly or every six months.
Who it is for
Who Needs Workers Compensation?
Every barbershop owner and salon owner with employees needs workers compensation, and it must cover apprentices, casuals and family members on the payroll.
If you work alone as a barber or chair renter, workers compensation does not cover you. You need a policy if someone works for you, and that can include a contractor your state counts as your worker.
Related covers
Other Insurance for Barbershops
Personal Accident and Illness
Helps replace your income if an injury or illness stops you working, which matters most when you are self-employed.
Read about personal accident and illness →
Public Liability
Covers claims from clients and the public for injury or damage to their property, with limits of $5 million, $10 million or $20 million.
Read about public liability →
Business Interruption
Covers the income you lose while the shop is closed after damage your policy covers, such as a fire.
Read about business interruption →Workers Compensation FAQ
Workers Compensation Questions
Yes, if you employ staff. Every state and territory requires employers to hold it, apart from a few employers with very small wage bills. Your state's rules set out exactly who counts as a worker.
In WA, Tasmania, the NT and the ACT, you buy it from a private insurer licensed or approved by the state or territory regulator. In New South Wales it is icare, in Victoria WorkSafe Victoria, in Queensland WorkCover Queensland, and in South Australia ReturnToWorkSA.
Usually not if you are a sole trader, because workers compensation covers employees. Personal accident and illness insurance is the cover for your own injury or illness.
Yes. Apprentices and trainees count as your workers, so your policy needs to cover them.
It can be. Injuries that build up over time, such as repetitive strain and carpal tunnel syndrome, can be claimed when a doctor links them to the work.
Workers compensation quote
Get a Workers Compensation Quote
Tell us which state you are in, how many people work for you and your yearly wages, and a broker will contact you with your options.
1800 556 777Monday to Friday, 8:30am to 5:00pm Perth time
