If you've been injured at work and discovered that your employer doesn't have WorkCover insurance, you can still claim full compensation. WorkCover Queensland acts as the nominal insurer, stepping in to pay your entitlements.
This situation is more common than most workers realise, especially in construction, hospitality and healthcare. From January through to September 2025, WorkCover recovered more than $14 million from employers who didn’t have insurance. This figure reflects the fact that even if your employer isn’t insured, your rights are still protected.
This guide explains how to claim workers compensation when your employer is uninsured, what penalties they may face, and outlines how to protect your entitlements to medical treatment, weekly payments, and potential lump sum compensation.
Understanding Claims Against Uninsured Employers
How does the system protect workers when employers don't have insurance?
Queensland law requires all employers to obtain WorkCover insurance within five business days of employing workers. But whether they abide by this law or not, WorkCover Queensland doesn't leave workers in the lurch. Instead, WorkCover acts as a ‘nominal insurer’, paying compensation directly to injured workers and then recovering the money from the employer.
Let’s take a look at some real-life examples:
A construction worker:
- You’re injured on a building site when scaffolding collapses.
- Your employer has no insurance.
- You lodge your claim directly with WorkCover Queensland, which investigates and pays your medical expenses and weekly wages.
- WorkCover recovers these costs and any penalties from your employer.
Someone in hospitality:
- You suffer a back injury lifting kegs at a pub.
- The owner admits they don’t have insurance and offers you $5,000 cash to ‘sort it out privately.’
- You refuse and claim through WorkCover, receiving the correct medical treatment, rehabilitation, and ongoing compensation.
- WorkCover pursues the employer for the full amount plus penalties.
Your Rights and Your Obligations
What you're entitled to:
- Full statutory compensation: The same entitlements as if your employer were insured, including medical expenses, weekly wage payments, rehabilitation services, and lump sum compensation for permanent impairment.
- Common law damages: You can pursue a separate common law claim for negligence directly against your employer if they breached their duty of care. This may result in significantly higher compensation amounts.
- Protection from retaliation: Your employer cannot legally terminate your employment or discriminate against you for making a WorkCover claim or reporting their lack of insurance.
What you must do:
- Notify your employer within 30 days of the injury (though WorkCover may accept late notifications if there is a valid reason). Documentation is critical, so send a written notice via email or registered post and keep copies.
- Lodge your claim within 6 months of the injury date for statutory benefits. Common law claims must be started within three years, though earlier action is strongly recommended.
- Attend medical assessments when requested by WorkCover. Failure to attend without a reasonable excuse can affect your entitlements.
Common Scenarios and Questions
What should I do if I discover my employer has no insurance after my injury?
The short answer: This doesn't affect your right to compensation. Lodge your claim directly with WorkCover Queensland rather than waiting for your employer to act.
What to do:
- Contact WorkCover immediately on 1300 362 128 or visit their website to lodge your claim online. Explain that you believe your employer is uninsured.
- Gather your evidence, including medical certificates, wage records, and any documentation showing details of your employment.
- Report your employer to WorkCover's compliance team. WorkCover uses sophisticated data matching to identify uninsured employers and will investigate accordingly.
Important note: Your employer's insurance status is not your responsibility to verify before claiming. WorkCover handles the investigation and the process of recovering funds.
What should I do if my employer offers me cash not to claim with WorkCover?
The short answer: Never accept private payments for work injuries. This can permanently void your rights to claim full compensation and common law damages.
What to do:
- Refuse any private settlement, no matter how generous it seems. Work injuries often have long-term consequences that can become apparent only months or years later.
- Document the offer in writing, including dates, amounts offered, and what was said. This evidence may be relevant to WorkCover's investigation and any common law claims that are lodged.
- Lodge your claim immediately with WorkCover Queensland to protect your rights.
Important note: Private settlements cannot prevent WorkCover from pursuing your employer for penalties and the recovery of funds. Your employer gains nothing by offering you cash except potentially avoiding their full legal liability to you.
How do I know if my employer actually has insurance?
The short answer: You can ask your employer directly for their WorkCover policy details, check online yourself, or WorkCover will verify insurance status in the process of making your claim.
What to do:
- Request written confirmation from your employer showing their WorkCover policy number and insurer details for peace of mind.
- Check your employment documents, as some employers include their WorkCover details in employment contracts or onboarding materials.
- Don't delay your claim while investigating. Lodge your claim with WorkCover and they will verify your employer's insurance status during their assessment.
Important note: You are not required to confirm your employer's insurance status before claiming. If you're uncertain, proceed with your claim and WorkCover will handle the verification.
What industries are most likely to have uninsured employers?
The short answer: Construction, hospitality (accommodation, food), and healthcare have the highest rates of uninsured employers in Queensland.
What to do:
- Be particularly vigilant if you work in one of these high-risk industries. It might even be best to ask about WorkCover insurance during onboarding.
- Look for warning signs such as being paid cash-in-hand, no written employment contract, or a general reluctance to discuss workers' compensation.
- Know that casual and temporary workers are significantly more likely to be employed by uninsured businesses. Thankfully, your employment status doesn't affect your right to claim.
Important note: Even if your industry typically has good compliance rates, never assume your specific employer has insurance. If injured, always lodge a claim to protect your rights.
Can I claim if I'm a contractor rather than an employee?
The short answer: Many contractors come under the definition of ‘workers’ under Queensland law and have full rights to WorkCover compensation.
What to do:
- Lodge your claim regardless of your employment classification. WorkCover assesses whether you're a ‘worker’ based on factors including who controls your work, who provides tools and equipment, and your level of independence.
- Gather evidence showing the nature of your work relationship, including contracts, payment records, communications about work direction, and who provided equipment.
- Seek legal advice if your claim is rejected based on worker status. Many contractors successfully challenge these rejections.
Important note: Having an ABN or being called a contractor doesn’t automatically stop you from getting WorkCover. What matters is how you actually work, not your job title. Read our article on WorkCover for contractors and sub-contractors to learn more.
Will making a claim get my employer in trouble?
The short answer: Uninsured employers face significant penalties, but your legal obligation is to protect your own rights and well-being.
What to do:
- Prioritise your health and financial security by claiming the compensation you're legally entitled to receive.
- Understand the consequences your employer faces: WorkCover can recover the compensation it has paid along with a 50% penalty. It can also recover any unpaid premiums with a 100% penalty. Corporations may face fines of up to $197,656.
- Remember, this is your employer's responsibility, not yours. They chose to operate illegally by failing to obtain mandatory insurance.
Important note: Your employer cannot legally retaliate against you for making a claim. If they attempt to terminate your contract or discriminate against you in any way, additional legal protections apply, including potential unfair dismissal claims.
Step-by-Step Process
When you discover your employer doesn’t have the necessary WorkCover insurance, follow these steps to protect your rights:
- Seek immediate medical attention - Visit your doctor, hospital, or emergency department depending on injury severity. Explicitly state that your injury is work-related, so this is documented in your medical records.
- Report the injury to your employer - Notify your employer in writing (email or letter) within 30 days, describing when, where, and how the injury occurred. Keep copies of all correspondence.
- Contact WorkCover Queensland directly - Call 1300 362 128 or lodge your claim online. Inform them you believe your employer is uninsured. WorkCover processes claims within 10 business days when it has all the necessary information.
- Submit your formal claim - Complete the required claim forms, providing details about yourself, your employer, the incident, and your injuries. Be thorough and accurate in describing what happened.
- Provide supporting documentation - Submit medical certificates, wage records, incident reports, witness statements, and any other relevant evidence.
- Attend required assessments - Cooperate with any medical examinations, workplace assessments, or interviews requested by WorkCover.
- Respond promptly to requests - WorkCover may need additional information to process your claim. Quick responses help avoid delays in receiving your entitlements.
- Receive your entitlements - Once approved, WorkCover pays your medical expenses, weekly wage payments, and rehabilitation costs directly. WorkCover will handle the recovery of any funds from your employer.
- Consider common law options - After your statutory claim is established, consult a lawyer about potential common law damages, which can offer significantly higher compensation if it can be shown your employer was negligent.
Documents you'll need:
- Medical certificates and records - Including initial consultation notes, specialist reports, diagnostic imaging, and ongoing treatment records.
- Employment documentation - Pay slips, employment contracts, work schedules, or other proof of your employment relationship. If you were paid cash without records, gather any evidence possible, including text messages, bank deposits, or witness statements.
- Incident evidence - Photos of the accident scene or hazard, witness contact details, your own written account prepared immediately after the incident, and any internal incident reports your employer may have completed.
- Financial records - Recent pay slips or tax returns showing your pre-injury earnings, records of any sick leave taken, and documentation of out-of-pocket medical expenses.
Key deadlines:
- Immediately: Seek medical treatment and inform your doctor that the injury is work-related
- Within 8 business days: Your employer should report the injury to WorkCover (if they have insurance)
- Within 30 days: You should notify your employer in writing about your injury
- Within 6 months: Lodge your statutory compensation claim with WorkCover Queensland
- Within 3 years: Start any common law negligence claim against your employer
Legal Framework
Primary legislation: The Workers' Compensation and Rehabilitation Act 2003 (Qld) establishes that all employers within Queensland must obtain WorkCover insurance within five business days of employing workers.
What this means for you
- Your employer's failure is not your problem - WorkCover Queensland acts as the nominal insurer, meaning they stand in place of the insurance your employer should have purchased and pay your compensation directly.
- You receive identical entitlements - Whether your employer has insurance or not, your statutory benefits (medical expenses, weekly payments, rehabilitation, lump sum impairment compensation) remain the same.
- Recovery is automatic - WorkCover recovers compensation directly from the employer. You don’t need to do a thing.
Recent Changes
Increased penalties (effective 2023) - Penalty units increased to $143.75, bringing maximum penalties to $39,531 for individuals and $197,656 for corporations who fail to obtain mandatory insurance. This significantly increases the financial risk for uninsured employers.
Enhanced compliance systems (2024) - WorkCover implemented sophisticated data matching technology to identify uninsured employers. This resulted in over $14 million recovered through 1,124 compliance activities from January through September 2025.
Red Flags and Warning Signs
When to act immediately:
- Your employer suggests ‘sorting it out privately’ - Any offer of cash payments or requests to avoid official channels should trigger immediate concern and prompt you to contact WorkCover directly.
- You cannot find insurance details - If your employer cannot or will not provide their WorkCover policy number and insurer details when you ask, this strongly suggests they may be uninsured.
- Cash-only wages without records - While not definitive proof of no insurance, cash payments without the correct documentation often correlate with other compliance failures, including a lack of workers' compensation coverage.
- Your employer discourages medical treatment - Any pressure to avoid seeing doctors, delay treatment, or downplay the severity of your injury may indicate your employer is trying to hide the injury from WorkCover.
- Employer threatens consequences for claiming - Any intimidation, threats of termination, or suggestions that claiming will cause problems indicate your employer knows they're operating illegally.
The top 4 common mistakes to avoid
- Accepting private payments - this can void your right to full compensation and common law damages.
- Delaying your claim - waiting risks losing your entitlements.
- Failing to document everything - without records, claiming becomes that much harder.
- Not seeking legal advice - navigating the system alone can be tricky. In the worst-case scenario, you can forego your rights and miss out on entitlements altogether.
When to Seek Legal Advice
Get advice early to protect your rights, entitlements, and compensation. Contact a specialist lawyer if:
- Moderate to severe injury – Protect your statutory benefits and common law damages before they’re jeopardised.
- Employer pressure – If your employer offers private settlements, threatens termination, or disputes your injury, legal advice safeguards your legal rights and ensures full compensation.
- WorkCover disputes your claim – Early support helps challenge decisions on your worker status, injury validity, or claim rejection.
- Ongoing symptoms or complex injuries – Persistent injuries may indicate serious underlying issues. Early advice fast-tracks access to treatment, rehabilitation, and support services while protecting your long-term entitlements.
- Considering a settlement – Don’t accept a lump sum without having it reviewed; legal advice ensures you receive adequate compensation for all losses.
Why early advice matters:
- Understand your full rights and entitlements - Many workers don't realise they may be entitled to both statutory WorkCover benefits and substantially higher common law damages for employer negligence.
- Access rehabilitation and support services sooner - Lawyers familiar with the system can fast-track approvals for treatment, equipment, and support services that enhance your recovery and quality of life.
- Protect your compensation claim - Mistakes in the early stages of claims can be difficult or impossible to rectify later, potentially costing you tens or hundreds of thousands in compensation.
- Get expert guidance before time limits expire - Once statutory time limits pass, your entitlements may be lost forever, regardless of how serious your injuries are or how much your employer was at fault.
Key Takeaways
- Full compensation guaranteed - WorkCover pays your entitlements if your employer has no insurance and recovers costs plus penalties from them.
- Never accept private cash - Doing so can void your compensation and common law rights.
- Act quickly - Seek medical treatment, report the injury within 30 days, and lodge your claim within 6 months.
- Employer penalties - Strict fines apply to all employers who fail to abide by the law.
- Seek early legal advice - Protect your full entitlements, including common law damages for employer negligence.
Get Help Now
If you've been injured and your employer doesn't have WorkCover insurance, getting early legal advice helps you understand your rights, access the rehabilitation you need, and protect your entitlements to compensation.
Many workers in this situation are entitled to substantially more compensation than they realise, particularly through common law claims against negligent employers. Early legal involvement ensures you don't lose your right to claim through missed deadlines or procedural mistakes.
Contact Smith's Lawyers today:
- Call 1800 960 482 for a free, no-obligation consultation with experienced WorkCover lawyers who can assess your situation and explain your options clearly
- No upfront costs: We operate on a No Win, No Fee, No Catch® basis, meaning you pay nothing unless your claim is successful
- Request a callback: Use the form below to have our team contact you at a time that suits you to discuss your claim confidentially
Our team has extensive experience with uninsured employer claims and understands the unique challenges these situations present. We'll handle your statutory WorkCover claim, pursue maximum common law damages, and ensure you receive every dollar you're entitled to while you focus on recovery.
