Does a Company Director Need Workers Compensation Insurance in the NT?

In the Northern Territory, a company director is covered only when the company has a workers compensation policy with an approved insurer and the director’s personal details and remuneration have been disclosed to the insurer. An undeclared director is not covered merely because the company has a policy. Separately, NT WorkSafe’s employer bulletin, updated 05 January 2023, states that a breach of the legislation can incur penalties of up to $179,000 for a company; figures checked 1 October 2026.

What conditions must be met for a director to be covered?

NT WorkSafe’s rule contains these linked conditions:

These conditions should be read together. A company policy is not a substitute for disclosing the director’s personal details and remuneration.

The cited material does not say that every company director is automatically a worker or that meeting the disclosure condition guarantees the outcome of a claim. The company’s policy terms still need to be checked.

Does the company policy cover every director automatically?

No. An employer must arrange a workers compensation policy if it employs a worker, but that general requirement does not remove the separate disclosure rule for company directors.

NT WorkSafe defines a worker as a natural person who:

• performs work or a service for another person under a contract;
• meets the employee test for PAYG withholding under the Taxation Administration Act 1953 (Cth), Schedule 1, Parts 2-5; and
• meets that test even if the employer should be withholding tax but is not.

If a person is determined to be an employee using Australian Taxation Office guidance, NT WorkSafe says the individual should be covered even if the employer considers them a contractor. For a company director, that employee-versus-contractor issue sits alongside the requirement to disclose personal details and remuneration.

If it is unclear whether a director is a worker or whether a policy is required, seek independent professional advice about tax and other employer obligations.

Is the rule different for a sole trader or partnership?

Yes. For a business owned by an individual or partnership rather than a company, NT WorkSafe says immediate family members living with the owner or partner are covered only if their personal details and remuneration have been disclosed to the insurer.

This is a separate rule from the company-director wording and should not be applied to a company without checking the relevant policy and regulator guidance.

Does the temporary-worker exception remove the director disclosure requirement?

No. The temporary exception concerns where a worker is normally employed, not whether a company director has been properly disclosed.

A director who falls within the temporary arrangement must still deal with the separate question of whether their personal details and remuneration have been disclosed.

What should an employer do before relying on cover?

1. Check whether the director is a worker. Apply the NT WorkSafe worker test and seek independent advice if the employment status is unclear.
2. Confirm the insurer’s status. Use the approved-insurer information on the NT WorkSafe page or contact an insurance broker.
3. Disclose the required information. Provide the director’s personal details and remuneration, then ask the insurer or broker to confirm what has been recorded.
4. Check the full policy terms. Read the policy’s Product Disclosure Statement and check the current NT WorkSafe regulator page before relying on the coverage.

What can go wrong if the requirements are missed?

NT WorkSafe identifies these financial exposures:

The company penalty is a maximum, not an expected or automatic amount. The claim-cost warning also does not mean that every undeclared director will necessarily create the same exposure as an employer with no policy at all.

This is general information, not financial or legal advice. Check the current NT WorkSafe regulator page and your policy’s PDS before relying on coverage.

Sources

• Workers compensation insurance requirements for employers | NT WorkSafe

FAQ

Is every company director automatically covered under the company’s policy?

No. Under the stated NT rule, the company must have a policy with an approved insurer, and the director’s personal details and remuneration must have been disclosed to the insurer.

What happens if a director’s remuneration has not been disclosed?

The director is not covered under the stated conditional rule. The company policy alone is insufficient when the required remuneration disclosure has not been made.

What if a director is treated as a contractor?

If ATO guidance determines that the person is an employee, NT WorkSafe says the individual should be covered even if the employer thinks they are a contractor. That classification does not remove the director disclosure requirement.

Does the six-month temporary exception cover an undeclared director?

No. That exception concerns workers temporarily sent from their home jurisdiction to the NT. It does not replace the requirement to disclose a company director’s personal details and remuneration.

Who should confirm the director’s details and the policy terms?

Ask the insurer or broker to confirm the information recorded and check the policy’s PDS. The current NT WorkSafe page should also be checked before making a coverage decision.