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WHS insurance: Act Amendments (NSW, WA)

Marsh examines the latest Workplace Health and Safety Insurance Amendments for NSW and WA and their impact on specific insurance lines.

14/12/2020 · 3 minute read

At a glance

  • New workplace health and safety insurance amendments have made it an offence to enter into a contract of insurance or other arrangement covering a liability for a monetary penalty imposed under the NSW Act.
  • It is also an offence to provide insurance or other arrangement, or grant of indemnity, with respect to such a liability, or to take the benefit of such insurance, arrangement or grant
  • Western Australia has since followed NSW's lead with new workplace health and safety insurance provisions, coming into effect in 2021.

The impact on the Workplace Health and Safety Act on Specific Classes of Insurance

Following on from our earlier Workplace Health and Safety update, recent amendments have been made to work health and safety legislation in New South Wales and Western Australia, specifically around the cover of insurance. Commencing on 10 June 2020 in NSW, workplace health and safety insurance amendments made to the Work Health & Safety Act 2011 (NSW) (“the NSW Act”) under the Work Health and Safety Amendment (Review) Act 2020 (NSW) (“the NSW Amending Act”) made it an offence to enter into a contract of insurance or other arrangement covering a liability for a monetary penalty imposed under the NSW Act. It is also an offence under the NSW Act to provide insurance or other arrangement, or grant of indemnity, with respect to such a liability, or to take the benefit of such insurance, arrangement or grant. 

Western Australia has since followed NSW’s lead by passing the Work Health and Safety Act 2019 (WA) (“the WA Act”), which received royal assent on 10 November 2020. Coming into effect in 2021, the new workplace health and safety insurance provisions in WA will make it an offence to:

  • enter into, or offer to enter into, an insurance policy that purports to indemnify a person for the person’s liability to pay a fine for an offence against the WA Act; or
  • indemnify, or offer to indemnify, another person for the other person’s liability to pay a fine for an offence against the WA Act; or
  • be indemnified, or agree to be indemnified, by another person for a liability to pay a fine for an offence against the WA Act; or
  • pay to another person, or receive from another person, an indemnity for a fine for an offence against the WA Act [1]. 

Our latest Workplace Health and Safety whitepaper specifically examines the workplace health and safety insurance amendments and the implications the above changes may have on specific classes of insurance. 

Read the full whitepaper here.

Alternatively, if you would like to discuss what these amendments may mean for your organisation, contact our Workplace Health and Safety experts, here.

[1]  Section 272A of the WA Act.

LCPA: 20/632

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