Many self-employed Queenslanders are uncertain about their rights if they suffer a work-related injury. Employees have clear entitlements to workers’ compensation, but business owners operating independently often question what protections are available to them. A common misconception is that only traditional employees are covered by workplace injury compensation, which warrants further clarification.
Understanding Sole Traders and Their Legal Status
In Queensland, sole traders—also known as independent business owners—operate as a single legal entity. This means that there is no distinction between personal and business assets, making the owner personally responsible for all financial and legal obligations. While this structure offers complete control over business decisions, it also carries the risk of personal liability.
Unlike a company structure, where liability is limited to the business itself, a sole trader’s personal assets—such as their home, vehicle, and savings—may be at risk if they face financial or legal challenges. Despite these risks, many entrepreneurs prefer this setup due to its simplicity. Setting up as a sole trader requires minimal paperwork, typically just registering an Australian Business Number (ABN) and possibly a business name, avoiding the stricter compliance obligations of incorporated entities.
Insurance Options for Self-Employed Individuals
Queensland’s workers’ compensation scheme does not automatically cover sole traders, making it essential to have alternative protections in place. There are several types of insurance policies designed to help self-employed individuals manage risks associated with workplace injuries.
1. Personal Accident and Illness Insurance: This type of policy provides financial support if you suffer an injury or illness that prevents you from working. It can cover medical expenses, rehabilitation costs, and lost income during recovery.
2. Income Protection Insurance: If you are unable to work due to an injury or illness, this coverage provides ongoing financial support to help cover living expenses and business costs.
3. Public Liability Insurance: Particularly relevant for tradespeople and contractors, this insurance protects against claims for injuries or property damage caused by your business activities.
4. Professional Indemnity Insurance: Individuals offering professional services or advice, such as consultants or financial advisors, may need this coverage to protect against claims of negligence or errors in their work.
Because each business has different risks, seeking tailored advice from an insurance specialist can help ensure you have the right coverage for your profession.
When Can a Sole Trader Claim Compensation?
Although Queensland’s statutory workers’ compensation scheme primarily applies to employees, there are some circumstances where self-employed individuals may still be eligible for compensation:
Engaging Contractors or Subcontractors: If you hire contractors or subcontractors who are injured while working for you, they may legally be considered “workers” under Queensland law. In such cases, you may be required to provide statutory workers’ compensation insurance.
Third-Party Negligence Claims: If your injury results from another party’s negligence, such as a faulty piece of equipment or unsafe worksite conditions, you may be able to pursue a claim for damages. This can cover medical costs, lost income, and other related expenses.
What to Do If You’re Injured at Work
If you are self-employed and suffer a work-related injury, taking immediate action can help protect your rights and any potential compensation claim.
Seek medical attention: Obtaining a medical assessment ensures your health is prioritised and provides formal documentation of your injury.
Consider legal advice: Consulting a legal professional can help you explore your options and determine whether you have a viable compensation claim.
Check insurance coverage: Review any insurance policies you hold to understand whether they provide benefits for your injury.
Time Limits for Making a Compensation Claim
Queensland law imposes strict timeframes on workplace injury claims. Under the Workers’ Compensation and Rehabilitation Act 2003 (Qld), most claims must be lodged within six months of the injury occurring. In exceptional circumstances, extensions may be granted, but acting quickly is crucial to avoid missing deadlines. Seeking legal advice early can help ensure you do not lose your right to claim.
Expert Legal Support for Injured Sole Traders
At GC Law, we understand the unique challenges faced by sole traders when seeking compensation for workplace injuries. Our legal team can assess your situation and guide you through the claims process. Contact one of our team of Compensation Lawyers Gold Coast today for an obligation-free, initial consultation.
