The employer took out a policy in May 2006 which was maintained until 30 June 2006. The policy was later cancelled (effective 30 June 2006) after the employer failed to pay the renewal premium for the 2006–07 year. WorkCover made numerous attempts to contact the policyholder prior to it ultimately being cancelled.
A claim was later received by WorkCover from a worker of this employer. The employer had no accident insurance policy in force at the time. The matter was investigated and claims costs were raised. Many unsuccessful attempts were made to obtain information from the employer in order to establish a new policy.
Investigations revealed the employer had run three different entities employing up to 28 employees and had failed to insure these.
The employer pleaded guilty to the charge of failing to insure and was ordered to pay restitution of $13,846 and costs. The employer was required to pay a $3,000 fine immediately or a default of a 30 day imprisonment would apply. The employer was incarcerated for 30 days.