If you’re a business owner in Australia, you already know how important it is to keep your workplace safe and compliant. But what happens if something goes wrong and you’re fined for a breach of workplace health and safety (WHS) laws?

A common question we hear from business owners is: “Can I get insurance to cover those fines?”

The short answer is, in most Australian states, no, you can’t. But that doesn’t mean you’re left without options. There are still important types of cover that can protect you from the costly fallout of a WHS incident.

Let’s break it down.

What does “insurance for WHS fines” actually mean?

Put simply, “insurance for WHS fines” refers to a policy that would cover the cost of a fine or penalty if your business breaches workplace health and safety laws. In other words, it’s an arrangement where your insurer would pay all or part of the fine on your behalf.

In the past, some insurance policies did include this type of cover. However, regulators and lawmakers decided it undermined the purpose of WHS penalties, which is to encourage businesses to take safety seriously. If fines can be insured away, they lose their deterrent power.

It’s also worth noting insurance can potentially cover legal, investigation, or defence costs when you’ve been fined.

Can you insure WHS fines? A state-by-state snapshot

Each state and territory has its own stance on whether insurance can cover WHS fines. Here’s a quick overview as of December 2025 subject to change.

State / Territory	Can you insure for WHS fines?	Key Details
NSW	❌ No	It’s an offence to insure or indemnify someone for a WHS fine under the Work Health and Safety Act 2011 (NSW).
VIC	❌ No	The Occupational Health and Safety Act 2004 (VIC) prohibits insurance for WHS fines.
WA	❌ No	The Work Health and Safety Act 2020 (WA) bans insurance or indemnities for fines.
QLD	❌ No	Recent amendments prohibit insurance for penalties under the WHS Act.
SA	⚠️ Not prohibited (yet)	No current ban, but reviews are underway.
TAS	⚠️ Not prohibited (yet)	No specific prohibition, but the rules may change.
ACT	✅ Yes (for now)	No express prohibition currently in place.
NT	✅ Yes (for now)	No express prohibition currently in place.

Key takeaway: In most major states (NSW, VIC, WA, QLD), it’s illegal to insure or indemnify a WHS fine.

What can insurance actually cover?

While you generally can’t insure the fine itself, there are still several important types of insurance that can help protect your business:

• Legal defence costs: If you or your business leaders are investigated or prosecuted for a WHS offence, legal fees can add up fast. Insurance that covers these costs can make all the difference.
• Statutory liability insurance (with exclusions): Some policies cover expenses related to alleged breaches of legislation, including WHS. However, they usually exclude the payment of the actual fine, so always read the fine print.
• Directors & Officers (D&O) insurance: This cover protects company directors and managers from personal liability if they’re involved in a WHS breach. It can help with defence and legal costs, though not the fine itself.

In short: you can’t use insurance to make the fine disappear, but you can use it to manage the costly legal and investigation process that often follows a WHS incident.

Why are WHS fine insurance bans being introduced?

Lawmakers have made these changes to strengthen workplace accountability. Fines are meant to be a deterrent, a clear reminder that safety responsibilities can’t be taken lightly.

If insurers were allowed to cover fines, businesses could effectively pass the penalty on to someone else, weakening that deterrent effect. These reforms aim to ensure employers and company officers take ownership of safety outcomes and maintain a strong culture of compliance.

What does this mean for your business and how can Morgan Insurance Brokers help?

If you’re running a business in Australia, this is your cue to take a closer look at your insurance. The rules around WHS fines are changing quickly, and it’s important your policies keep up.

Here’s what you should do next:

• Review your policies: Check that your insurance doesn’t attempt to cover WHS fines in states where that’s now illegal. In some cases, even including that type of clause can make your policy void.
• Make sure you’re covered for defence and investigation costs: These can be significant, and cover is still allowed (and highly recommended).
• Work with a specialist broker: Navigating WHS insurance can be complex, especially since every state is different. Morgan Insurance Brokers can help you find the right mix of cover, including statutory liability and directors’ & officers’ (management liability insurance) policies that keeps you protected and compliant. We’ll make sure you understand what’s covered, what’s not, and where your greatest risks lie.

Final thoughts

While you can’t insure away WHS fines in most states, you can protect your business against the major expenses that come with a breach, like legal and investigation costs. The key is understanding the laws in your state and having the right cover in place.

At Morgan Insurance Brokers, we help Australian businesses stay compliant and confident by sourcing tailored insurance solutions that meet current legislation.

If you’d like to review your cover or discuss your WHS risk exposure, get in touch with our team today, we’re here to help you protect your business the right way.