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Can a sole trader or partnership take out workers compensation insurance for themselves?
Section 155 of the Workers Compensation Act 1987 requires employers to take out a workers compensation insurance policy to cover their workers. When employers take out a workers compensation policy with a licensed insurer, this policy covers any of the employer's workers (whether permanent or casual) in the event of them suffering a work-related injury or illness.
If a sole trader establishes a Pty Ltd company, the company becomes the 'employer' and a policy must be taken out under the company name to cover the 'working director' who was formerly the sole trader, plus any other workers they may have.
WorkCover advises sole traders and partnerships to take out a personal accident and illness policy or an income protection policy, in case they are unable to work. This is not a WorkCover requirement.