Failure to have workers compensation insurance can lead to severe penalties, including fines and possible imprisonment if a person is injured at work.
Consequences of failing to take out insurance
Fines
You could face a ‘double avoided penalty’, which is a fine that constitutes twice the insurance premium you avoided paying.
Imprisonment
If a worker is injured or becomes ill and you didn’t have insurance, you could go to prison.
Business risk
Operating without insurance compromises worker safety and fairness across the industry. Compliant businesses are disadvantaged by those who avoid this responsibility.
SIRA’s role
SIRA can identify uninsured employers by collecting evidence through:
- injury claims and enquiries
- anonymous tips
- data auditing
- collaborations with other agencies.
SIRA also conducts educational visits to small businesses to reinforce the importance of fulfilling workers compensation obligations.
How to report workers compensation fraud
- Call our Customer Service Centre on 13 74 72
- Send an email to contact@sira.nsw.gov.au
- Write to Compliance, Investigations and Prosecutions, Locked Bag 2906, Lisarow, NSW 2252
Fraud framework
SIRA's Fraud Framework sets out our approach to deter, detect and respond to fraud.
Updated 19 December 2024