Hiring apprentices can be a great investment — injecting fresh energy, future talent, and government incentives into your business.
But with opportunity comes risk. Apprentices are statistically more prone to workplace incidents, making insurance protection and a culture of safety essential from day one.
This guide explains the essential insurance covers, risk factors, and compliance steps Australian employers should consider when taking on apprentices.
Why Apprentices Add Value and Risk?
Apprenticeships benefit both employers and workers, combining hands-on experience with formal training. Government grants and wage subsidies make them an affordable way to develop skilled employees.
However, Safe Work Australia classifies apprentices as vulnerable workers due to their inexperience and higher likelihood of workplace injury, particularly in construction, electrical, and mechanical trades.
Employers must prepare for these risks by obtaining suitable coverage and implementing effective supervision.
Mandatory Insurance for Apprentices
1. Workers' Compensation Insurance (Compulsory)
Every Australian state and territory requires employers to hold workers’ compensation insurance for all employees, including apprentices.
This cover protects both the apprentice and employer against medical costs, income loss, and rehabilitation expenses following a workplace injury.
Tip: Even if your apprentice works part-time or casually, workers’ compensation remains mandatory under state law.
Recommended Covers for Apprenticeships
While workers’ compensation is required, it’s not enough on its own. Several other forms of protection are essential to reduce your business exposure.
2. Public Liability Insurance
If an apprentice accidentally damages a customer’s property or causes injury to a third party, public liability insurance can cover the associated legal and compensation costs.
It’s not legally required, but it’s one of the most critical safety nets for small and medium businesses.
3. Product Liability Insurance
Product Liability Insurance protects your business if an apprentice contributes to a product or service that later causes harm, for example, food poisoning in hospitality or faulty installation in construction.
4. Commercial Motor Vehicle Insurance
If your apprentice drives company vehicles, ensure they’re listed on your commercial motor policy as an authorised driver, particularly if they’re under 25.
5. General Property Insurance (Tools Cover)
Apprentices often use business-owned tools and equipment. General Property Insurance (usually part of a Business Pack) covers theft, accidental loss, or damage to tools, a frequent risk in trades and construction.
Industry-Specific Risks: Construction, Hospitality & More
Different industries require different coverage strategies:
| Industry | Common Apprentice Risks | Recommended Cover |
|---|---|---|
| Construction | Falls, electrical hazards, equipment misuse | Workers Compensation, Public Liability, Tools Cover |
| Hospitality | Cuts, burns, food contamination | Product Liability, Workers Compensation |
| Manufacturing | Machinery accidents, noise exposure | Workers' Compensation, Management Liability |
| Automotive | Vehicle use, chemical exposure | Motor Vehicle, Public Liability |
| Hair & Beauty | Allergic reactions, product misuse | Professional Indemnity, Product Liability |
Tailoring your insurance to your industry ensures apprentices and your business are protected from the most relevant risks.
Building a Safety-First Culture
Before an insurer provides cover, your business must meet key safety and training standards. These not only reduce premiums but also prevent incidents.
Best-practice checklist:
- Provide structured supervision and mentoring for first-year apprentices.
- Keep detailed safety induction and training records.
- Conduct regular workplace inspections and risk assessments.
- Maintain open communication around hazards and reporting.
Insurers reward proactive employers with better policy terms and pricing — proving that prevention pays.
How Global Insurance Solutions Can Help?
At Global Insurance Solutions (GIS), we help Australian businesses safeguard their people and operations by arranging tailored insurance programs.
Our team reviews your business setup, identifies potential underinsured areas, and sources comprehensive protection from over 150 insurers.
Whether you’re hiring your first apprentice or managing a national training program, we’ll ensure your policies — from workers’ compensation to public liability and tools cover — meet both legal and operational requirements.
Conclusion
Apprentices are the future of your business, but they also introduce new responsibilities and risks.
With the right insurance and safety culture in place, you can protect both your people and your profitability.
Partner with Global Insurance Solutions today to make sure your apprentices, staff, and assets are fully protected.
Frequently Asked Questions (FAQs)
1. Do apprentices need to be covered under workers' compensation?
Yes, workers’ compensation is mandatory for all apprentices in every Australian state and territory.
2. Is public liability insurance necessary for apprentices?
While not compulsory, it’s strongly recommended to protect your business from third-party injury or property damage claims.
3. Does my business insurance automatically cover apprentices?
Not always. You must notify your insurer when hiring apprentices to ensure they’re included in your policy schedule.
4. What happens if my apprentice causes damage while driving a company vehicle?
They’ll only be covered if listed on your commercial motor vehicle policy as an authorised driver.
5. How can I reduce insurance premiums when hiring apprentices?
Implementing strong safety training, maintaining compliance records, and working with a broker like GIS can help lower your risk profile and costs.
Risk Advisor, Insurance Broker & Director
With around 15 years in insurance, Yuvi Singh is a passionate Risk Advisor, Director, and Insurance Broker at Global Insurance Solutions. Backed by a Commerce degree and ANZIIF diploma, Yuvi leads a team servicing SMEs across industries like manufacturing, logistics, fuel, IT, and more. At GIS, clients benefit from tailored, transparent advice, access to 150+ insurers, and end-to-end risk solutions. Recognised as a 2022 Insurance Magazine Rising Star and 2024 Top Insurance Broker by Insurance Business Australia, Yuvi delivers flexible, effective outcomes with integrity and innovation.