Cleaner Insurance Requirements by State

Let’s cut to the chase: if you’re a cleaner in Australia, you’ve got to know what insurance your state actually makes you carry. Because here’s the thing—there’s no single national rule. Each state runs its own workers comp scheme, and the expectations for public liability (PL) vary depending on where you’re working. Get it wrong, and you could be footing a massive bill out of your own pocket.

This guide breaks it down state by state. No fluff, no jargon. Just what you need to know to stay legal and keep your business protected.

Why There’s No One-Size-Fits-All Rule

Australia’s insurance system is a patchwork. The federal government sets some broad guidelines, but each state and territory runs its own workers compensation scheme. That means the rules for covering yourself or your staff change depending on where you’re based—and where you’re actually cleaning.

On top of that, public liability insurance isn’t mandated by law in any state. But in practice, it’s basically compulsory. Every commercial contract you sign will require it. Every property manager will ask for a certificate of currency. You won’t get a job without it.

So here’s what we’ll cover:

• Workers comp requirements for cleaners in each state
• How the schemes work for sole traders vs employers
• What happens when you cross borders
• Why PL insurance is non-negotiable even if it’s not a law

NSW – icare

Workers comp scheme: icare (Insurance and Care NSW)

Requirements for cleaners: If you employ anyone—even one casual cleaner—you must have workers comp insurance through icare. There’s no exemption for part-time or short-term staff. If you’re a sole trader with no employees, you’re not required to cover yourself. But you can opt in voluntarily if you want.

State-specific regulations: NSW has a fairly straightforward system. You register with icare and pay premiums based on your industry classification and wages. Cleaners fall under a specific class code (usually 6321 or similar), which determines your rate. The scheme also covers claims for injury or illness arising from work.

Typical PL expectations in NSW: Most commercial contracts in NSW require at least $10 million public liability cover. Some larger clients or government contracts might ask for $20 million. It’s standard practice to carry $10 million minimum.

Key point: If you’re a sole trader in NSW, you don’t legally need workers comp for yourself. But if you hire anyone—even a friend for a one-off job—you must have it.

VIC – WorkSafe Victoria

Workers comp scheme: WorkSafe Victoria

Requirements for cleaners: Same rule applies: if you employ staff, you need WorkSafe cover. Sole traders with no employees are exempt from compulsory cover. However, WorkSafe does allow sole traders to voluntarily insure themselves.

State-specific regulations: Victoria has a specific “cleaners” classification under its premium system. Rates are calculated based on your total wages and the industry risk level. One thing to watch: WorkSafe Victoria is strict about reporting injuries. If a worker gets hurt, you must notify WorkSafe within 10 days.

Typical PL expectations in VIC: $10 million is the baseline in Victoria. Most cleaning companies carry $10–20 million. If you’re doing high-end residential work, $5 million might be enough, but commercial clients almost always demand $10 million.

Key point: WorkSafe Victoria has a reputation for being thorough with audits. If you’re employing anyone, don’t try to skip the cover—they’ll catch you.

QLD – WorkCover Queensland

Workers comp scheme: WorkCover Queensland

Requirements for cleaners: If you have employees, you must have WorkCover QLD insurance. Sole traders are not required to cover themselves. But here’s a nuance: if you’re a sole trader but you subcontract to other cleaners (and they’re not employees), you might not need cover for them—but you need to be careful about how you structure the relationship.

State-specific regulations: Queensland’s scheme is similar to others, but there’s a specific rule: if you’re a director of a company and you don’t pay yourself a wage, you might not be covered. You need to declare any director wages to ensure you’re covered if injured.

Typical PL expectations in QLD: $10 million is standard. In regional areas, some clients might accept $5 million, but don’t count on it. Most cleaning contracts in Brisbane and the Gold Coast require $10 million.

Key point: WorkCover QLD has a “no premium, no cover” policy. If you don’t pay your premiums, you’re not covered—even if you’ve registered.

WA – WorkCover WA

Workers comp scheme: WorkCover WA

Requirements for cleaners: Same as others: employees must be covered. Sole traders are exempt. However, WA has a slightly different twist: if you’re a sole trader but you hire subcontractors who are genuinely self-employed, you may not need cover for them. But if they’re treated like employees (you control their hours, tools, etc.), they count as employees.

State-specific regulations: WA’s scheme is administered by WorkCover WA, but policies are issued by private insurers. You need to shop around for a policy from an approved insurer. Premiums are based on wages and industry classification.

Typical PL expectations in WA: $10 million is the norm. In Perth, some commercial contracts ask for $20 million. In regional areas, $5 million might pass, but it’s safer to have $10 million.

Key point: WA’s private insurer model means you can compare quotes. Don’t just take the first one—get a few.

SA – ReturnToWork SA

Workers comp scheme: ReturnToWork SA (formerly WorkCover SA)

Requirements for cleaners: Employees must be covered. Sole traders are exempt. However, SA has a specific rule: if you’re a sole trader and you hire a family member (even a spouse), they may still be considered an employee and need cover.

State-specific regulations: ReturnToWork SA is a bit different—it’s a single insurer model. You register with them directly. Premiums are based on wages and industry classification. The scheme also has a strong focus on return-to-work programs.

Typical PL expectations in SA: $10 million is standard. In Adelaide, most commercial clients expect $10 million. Residential work might get away with $5 million, but don’t risk it.

Key point: SA’s scheme is relatively straightforward, but make sure you declare all workers, including family members, to avoid penalties.

TAS – WorkSafe Tasmania

Workers comp scheme: WorkSafe Tasmania

Requirements for cleaners: Employees must be covered. Sole traders are exempt. Tasmania’s scheme is small, so premiums can be higher per dollar of wages compared to larger states.

State-specific regulations: WorkSafe Tasmania is the regulator, but policies are issued by private insurers. You need to find an approved insurer. The scheme covers all workers, including casuals and part-timers.

Typical PL expectations in TAS: $10 million is common, but some smaller clients in regional areas might accept $5 million. If you’re cleaning for the government or larger businesses, $10 million is expected.

Key point: Tasmania’s smaller market means fewer insurer options. You might need to shop around a bit more.

NT – NT WorkSafe

Workers comp scheme: NT WorkSafe (part of the Department of Industry, Tourism and Trade)

Requirements for cleaners: Employees must be covered. Sole traders are exempt. The NT scheme is relatively small, so premiums can be higher.

State-specific regulations: NT WorkSafe administers the scheme, but policies are issued by private insurers. You need to register and pay premiums based on wages.

Typical PL expectations in NT: $10 million is standard in Darwin. In remote areas, some clients might accept $5 million, but it’s not common.

Key point: The NT has a smaller pool of insurers, so expect fewer options. But coverage is still mandatory for employers.

ACT – WorkSafe ACT

Workers comp scheme: WorkSafe ACT (part of Access Canberra)

Requirements for cleaners: Employees must be covered. Sole traders are exempt. The ACT scheme is small but well-regulated.

State-specific regulations: WorkSafe ACT is the regulator, and policies are issued by private insurers. The scheme covers all workers, including casuals.

Typical PL expectations in ACT: $10 million is the norm. Government contracts in Canberra often require $20 million.

Key point: The ACT has a high proportion of government work. If you’re cleaning for the government, expect higher PL requirements.

Sole Trader vs Employer – The Critical Difference

Here’s the single most important thing to understand: if you have no employees, most states don’t require you to have workers comp for yourself. But the moment you hire anyone—even a casual cleaner for one day a week—you must have cover in every state.

Sole trader with no staff:

• Workers comp: optional in all states (you can opt in voluntarily)
• Public liability: not legally required, but practically essential

Employer (even one employee):

• Workers comp: mandatory in every state
• Public liability: still not legally required, but contracts will demand it

What counts as an employee?

• Someone you control (hours, tools, methods)
• Someone you pay a wage (not a contractor invoice)
• Even family members can count

If you’re unsure whether someone is an employee or a contractor, check the ATO’s guidelines. Getting it wrong can cost you big time.

Cross-Border Work – Which Scheme Covers Your Staff?

If you clean in multiple states—say you’re based in NSW but do jobs in Victoria and Queensland—you need to know which workers comp scheme applies.

General rule:

• The scheme of the state where the worker is usually based applies
• If a worker is temporarily working in another state, your home state’s scheme still covers them
• But if you have workers who are permanently based in another state, you need that state’s cover

Example:

• You’re a Melbourne cleaner with one employee. You both live in Victoria, but you take a month-long contract in Sydney. WorkSafe Victoria covers that employee for the NSW work.
• But if you hire a cleaner who lives in Sydney and works only in NSW, you need icare cover for them—even if your business is based in Victoria.

What about PL insurance?

• Public liability is usually nationwide—your policy covers you anywhere in Australia as long as you’re operating within your business description.
• But check your policy wording. Some policies have territorial limits.

Practical tip: If you regularly work in multiple states, get a PL policy that says “Australia-wide” and confirm with your insurer.

PL Insurance – Not Mandatory, But You’d Be Mad to Skip It

Public liability insurance isn’t required by any state law. But in practice, you won’t get a cleaning job without it. Here’s why:

• Contracts require it: Every commercial cleaning contract will ask for a certificate of currency showing at least $10 million PL cover.
• Property managers demand it: If you’re cleaning rental properties or strata buildings, the agent will insist on PL.
• Homeowners expect it: Even residential clients are increasingly asking for proof of insurance.
• One accident can wipe you out: If you damage a client’s property—say you knock over a $5,000 vase or flood a carpet—you’re personally liable. Without PL, you’re paying out of pocket.

What PL covers:

• Damage to someone else’s property
• Injury to a third party (e.g., a client trips over your vacuum cord)
• Legal costs if you’re sued

What it doesn’t cover:

• Damage to your own equipment
• Injury to you or your employees (that’s workers comp)
• Intentional acts

Typical PL limits for cleaners:

• $5 million: okay for small residential work
• $10 million: standard for commercial contracts
• $20 million: common for government or large corporate clients

How to get it: You can compare quotes online. For example, you can get a quote through BizCover and see options from multiple insurers in minutes. It’s quick and straightforward.

Interstate Recognition of Certificates of Currency

One common question: if you have a PL policy from a NSW insurer, will a Victorian client accept it?

Short answer: Yes, generally.

Long answer:

• Public liability policies are usually Australia-wide. A certificate of currency from any Australian insurer is valid across all states.
• However, some clients may prefer a local insurer—especially government clients. But that’s rare.
• The key is that your policy must be current and show the required limit (usually $10 million or $20 million).

What about workers comp certificates?

• Workers comp certificates are state-specific. A NSW icare certificate won’t cover a worker in Victoria unless they’re temporarily there.
• If you have workers in multiple states, you need separate policies for each state.

Practical advice: Keep a digital copy of your PL certificate on your phone. You’ll need to send it to clients regularly.

FAQ

1. Do I need workers comp if I’m a sole trader with no employees?
No, in most states you’re exempt. But you can opt in voluntarily. It’s worth considering if you have no other income protection.

2. What happens if I don’t have workers comp for my employee?
You’ll face fines, penalties, and potentially legal action. Plus, you’ll be personally liable for any injury costs. It’s not worth the risk.

3. Can I use the same PL policy for all states?
Yes, as long as your policy says “Australia-wide.” Most standard policies do. Check with your insurer to be sure.

4. How much PL cover do I need for residential cleaning?
$5 million is usually enough for residential, but $10 million is safer and more common. Many clients now expect $10 million minimum.

5. What if I only clean in one state but my client is based in another?
The location of the work matters, not where the client is based. If you’re cleaning in NSW, NSW rules apply.

6. Can I get workers comp for myself as a sole trader?
Yes, in all states you can voluntarily take out workers comp cover. It’s not mandatory, but it can protect you if you’re injured at work.

Disclosure Footer

This article provides general information only and does not constitute financial or legal advice. Insurance requirements can vary based on your specific circumstances, including the type of cleaning work you do and your business structure. You should consult with a qualified insurance broker or your state’s workers compensation authority for advice tailored to your situation. Always read the product disclosure statement (PDS) before purchasing any insurance policy.