Prohibition on Insurance Arrangements for WHS Breaches in QLD
Traditionally, businesses could purchase insurance to cover fines and penalties related to breaches of WHS regulations. However, from 28th March 2024, all persons in Queensland are no longer allowed to get insurance to indemnify themselves against penalties that they might otherwise have had to pay for noncompliance.
This prohibition applies to both the WHS Act and Safety in Recreational Water Activities Act 2011.
Governments and regulatory bodies see this as a great deterrent and a way to hold employers accountable for maintaining safe working environments. The shift also aims to promote accountability, encourage preventative measures to be taken and to improve workplace culture.
Without the safety net of insurance, companies are more likely to invest in robust safety protocols, training programs, and regular safety audits, and when safety becomes a priority driven by accountability it leads to a cultural shift within organisations. This proactive approach can significantly reduce the likelihood of accidents and breaches.
Recognizing this, many jurisdictions have introduced or are considering prohibitions on such insurance arrangements. The core idea is simple: if companies know that they cannot offload the financial consequences of their negligence, they are more likely to invest in preventative measures and foster a safer work environment.
Moreover, a safer workplace can lead to lower overall insurance premiums, as insurers often provide better rates to businesses with strong safety records.
Recommended Next Steps
Contact your insurance broker or indemnity provider to inquire about whether you have an insurance contract or indemnity arrangement covering fines under the WHS or SRWA laws.
If you require any further assistance in meeting your workplace health and safety obligations, feel free to give us a call.
