Report
Governance and reporting
Psychosocial risk: what every Australian employer is now exposed to
A joint report from ReFresh and upcover. Two views of the same problem: what the regulator expects to see, and how insurance responds when a psychosocial claim lands.
Harrison Kennedy
Co-founder and CEO, ReFresh
Skye Theodorou
Co-founder and CEO, upcover
ReFresh
Report
Psychosocial risk: what every Australian employer is now exposed to
161%
rise in serious mental health claims in the ten years to 2023-24
35.7 weeks
median time off for a serious mental health claim, against 7.4 weeks for all serious claims
$288,542
average cost of a psychological injury claim in NSW in 2024-25
Sources: Safe Work Australia, Key WHS Statistics Australia 2025; NSW Treasurer, Workers Compensation Ministerial Statement, 18 March 2025.
Inside the report
What the report covers
The regulator view
What inspectors assess, and what recent enforcement looks like.
The insurance view
How workers compensation and management liability respond, and where the gaps are.
Questions for your broker and board
Five questions to check your cover and your board reporting.
The founder’s defence
An eight-point checklist for founders and leaders.
Psychosocial safety is now regulated in every Australian state and territory. Claims are rising quickly, and they are among the longest and most expensive a business can face. This report looks at the problem through two lenses: the regulator and system view from Harrison Kennedy, Co-founder and CEO of ReFresh, and the insurance view from Skye Theodorou, Co-founder and CEO of upcover.
What has changed
Serious mental health claims rose 161% in the ten years to 2023-24, faster than any other type of injury. The median time off for a serious mental health claim is 35.7 weeks, against 7.4 weeks across all serious claims. Source: Safe Work Australia, Key WHS Statistics Australia 2025.
In NSW, the average psychological injury claim cost $288,542 in 2024-25. Source: NSW Treasurer, Workers Compensation Ministerial Statement, 18 March 2025.
NSW codes of practice became the minimum standard on 1 July 2026, the same day NSW changed its workers compensation rules for psychological injury.
What is inside
The regulator view: what inspectors assess, and what recent enforcement looks like.
The insurance view: how workers compensation and management liability respond, and where the gaps are.
Five questions to ask your broker and board.
The founder’s defence: an eight-point checklist for founders and leaders.
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A 9-page PDF from ReFresh and upcover.
