Domestic Workers Compensation Insurance
What is domestic workers compensation insurance?
Domestic workers compensation insurance (often called household workers insurance) is a policy that covers household employees for work-related injuries and illnesses that occur while performing domestic tasks for a private home. It helps pay statutory benefits such as medical expenses, lost wages, and rehabilitation if the worker is injured on the job.
Unlike home and contents insurance, which protects your property, workers’ compensation responds to injuries and illnesses arising out of or in the course of employment. For domestic work, each state and territory has its own rules, eligibility criteria, and application process. Depending on the state and territory that you live in, domestic workers compensation insurance may be a standalone insurance policy or it may be available as an optional extra under a home insurance policy.
Who needs domestic workers compensation insurance?
You may need domestic workers compensation insurance if you engage an individual as a household employee, rather than a business. For example, if you hire a business like a cleaning company or gardening business that employs its own staff and provides invoices under its ABN, the business will be responsible for its own workers compensation insurance, not you.1
When in doubt, seek advice from your state scheme regulator or an insurance broker.
Common examples of domestic workers include:
- Nannies, au pairs, babysitters engaged regularly as employees.
- housekeepers and cleaners paid as individuals (not through their own cleaning business).
- Gardeners and handypersons engaged as individuals on a regular basis.
- In-home carers, support workers, and personal assistants employed directly by the household.
- Cooks, drivers, and other domestic staff.
How much does domestic workers compensation insurance cost?
Premiums for household workers insurance depends on the state you live in and the regulations it has. In Queensland, a WorkCover Queensland Household workers insurance policy for two years cost $60.1
Pricing commonly depends on:
- The state or territory issuing the policy
- The type of domestic duties
- The estimated wages and hours worked
- Any claims history on the policy.
How to arrange domestic workers compensation insurance
- Do not assume your home and contents policy covers worker injuries; workers compensation is a separate requirement.
- Check your state or territory workers compensation authority website or speak with a broker to understand whether your situation requires a household workers policy.
- Document the duties, approximate hours, pay rate, and whether you will supply tools and equipment.
- Complete the household workers insurance application with your state scheme or insurer.
- You use a contractor business instead, ask for their workers compensation certificate (where relevant), public liability certificate, and ABN details.
How to make a domestic worker compensation claim
If someone working for you is injured in your home:
- Seek medical attention immediately and ensure the injured worker is safe.
- Notify your insurer or scheme as soon as practicable and follow the reporting steps.
- Provide required documentation, such as timesheets, job description, wage details, and incident description.
- Cooperate on return-to-work planning, which may include modified duties or adjusted hours as medically suitable.
What does domestic workers compensation insurance cover?
Domestic workers’ compensation insurance for households generally provides a combination of liability and property-related cover designed to protect homeowners when employing domestic staff in or around the home.
What does domestic workers compensation insurance not cover?
Domestic workers’ compensation insurance generally does not cover injuries, incidents or liabilities that fall outside a defined employment relationship or are not directly related to domestic work duties.
Always read the Product Disclosure Statement (PDS) and the target market determination (TMD) to know the inclusions and exclusions of your policy, and that the insurance policy is the right fit for your home.
Always check the definitions of “worker” and “domestic work” and any thresholds (for example, minimum hours, pay caps) in your jurisdiction.
Common exclusions and limitations include:
- Non-work-related injuries or illnesses not connected to the domestic duties
- People who are not employees
- Incidents outside the course of employment
- Pre-existing conditions except where aggravated by a work incident
- Liability to third parties unrelated to worker injury.
How does domestic workers compensation work across Australian states and territories?
Domestic workers compensation is regulated at the state and territory level. While the concept of household workers insurance is broadly similar, the eligibility, cost, and process differ between states.
Because rules vary by state, you should confirm their obligations with the relevant state or territory workers compensation government agencies or consult an insurance broker. Each state and territory in Australia has its own rules regarding employees and the insurance you need. To learn more about the rules, contact your relevant state insurance regulatory authority:
- Australia Capital Territory (ACT): WorkSafe ACT
- New South Wales (NSW): icare
- Northern Territory (NT): WorkSafe NT
- Queensland (QLD): WorkSafe QLD
- South Australia (SA): Return To Work SA
- Tasmania (TAS): WorkSafe Tasmania
- Victoria (VIC): WorkSafe Victoria
- Western Australia (WA): WorkCover WA
Meet our business insurance expert, Adrian Taylor
As a General Insurance expert with over 13 years’ experience in financial services, Adrian Taylor strongly believes in the protection and peace of mind that all types of business insurance provide business owners. Adrian says this type of cover can be the difference between a business staying afloat and going under if trouble arises.
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1 WorkCover Queensland. Household worker insurance. Accessed April 2026.