Turnover, subcontractors and insurance questions
How revenue and contractor use can change the questions an insurer asks.
When you run a business on a temporary visa in Australia, your health cover isn’t just a visa condition—it can also become a factor in how you structure your work. If you operate as a sole trader, through a company, or hire subcontractors, the way your income flows and who does the work may affect the questions an insurer asks when you apply for Overseas Visitors Health Cover (OVHC). This article explains how turnover and subcontracting can influence your insurance application, what details you might need to provide, and how to prepare.
OVHC is designed for people on temporary visas who aren’t covered by Medicare. While the basic requirement is to hold adequate health insurance, some insurers may ask additional questions if your business circumstances suggest a higher level of risk or a need for different cover. Understanding these triggers can help you avoid delays and choose the right policy.
Insurers assess risk based on the information you provide. If you declare business income or mention that you engage subcontractors, they may ask follow-up questions to clarify your situation. This isn’t about making things difficult—it’s about ensuring that the cover you buy matches your needs and that the insurer can manage its own risk properly. Being upfront and prepared can make the process smoother.
This article covers common scenarios where turnover and subcontractors come into play, what information you might be asked for, and practical steps to get your OVHC application right. Remember that insurer policies can change, so always check the latest requirements directly with the insurer or through official sources before you apply.
Your business turnover—the total revenue your business generates—can be a key piece of information for an insurer. If you’re self-employed and your income comes mainly from your own labour, a standard OVHC policy is usually fine. But if your turnover is high or you have multiple revenue streams, the insurer might question whether you’re running a larger enterprise that could involve employees or higher liability risks. They may ask for details like your ABN, business structure, or annual revenue range to assess whether your activities fall within the scope of a personal health cover policy.
Similarly, if you use subcontractors, insurers may want to understand the nature of those relationships. Are the subcontractors working under your direction? Do they have their own insurance? If you’re responsible for their safety or liable for their actions, that could affect your risk profile. Some insurers might ask whether your OVHC needs to be supplemented with other types of insurance, such as public liability or workers’ compensation. While OVHC itself doesn’t cover business liabilities, the questions can arise during the application process to ensure you’re aware of potential gaps.
When you apply for OVHC, you’ll typically be asked about your occupation and employment status. If you indicate that you’re self-employed or a business owner, the insurer may follow up with questions about your business activities. Here’s a practical checklist of information you might need to provide: your ABN (if you have one), a brief description of your business activities, your estimated annual turnover, whether you have any employees or subcontractors, and whether you hold any other business insurance. Having these details ready can speed up the process.
If you use subcontractors, consider these points: you may be asked how many subcontractors you engage, whether they have their own insurance, and if you have a written contract with them. Insurers aren’t trying to catch you out—they’re checking that your health cover is appropriate and that you understand where your liabilities lie. In some cases, they might recommend that you speak to a business insurance specialist if your situation is complex.
It’s important to know that OVHC is not business insurance. It won’t cover you for injuries to subcontractors, damage to property, or professional indemnity. If your business turnover is significant or you rely heavily on subcontractors, you may need separate business insurance. Some insurers may ask about this during the OVHC application to ensure you’re not under the mistaken impression that your health cover extends to business risks. Always check the Product Disclosure Statement (PDS) for exactly what is and isn’t covered.
To avoid surprises, review your business structure before applying. If you’re a sole trader with low turnover and no subcontractors, your application will likely be straightforward. If you have a company, trust, or partnership, or if you engage others, be prepared to explain your setup. Keep documents like your ABN registration, business activity statements, or subcontractor agreements handy in case the insurer requests them. Being organised shows that you’re a responsible applicant and can help avoid delays.
Regulations and insurer requirements can change. The Department of Home Affairs sets the visa condition for health cover, but insurers set their own underwriting rules. What one insurer asks today might differ tomorrow. Always verify the current application questions and policy terms directly with the insurer or through a trusted comparison service. This article provides general guidance only and should not be taken as legal or financial advice.
In summary, your business turnover and use of subcontractors can influence the questions an insurer asks when you apply for OVHC. By understanding why these factors matter, preparing the right information, and knowing the limits of your health cover, you can navigate the application process with confidence. For personalised advice, consider consulting an insurance broker or migration agent who understands the intersection of business and visa requirements.