If you are reading this article then chances are you have already made a compensation claim to WorkCover for your work related injury, which has been accepted by WorkCover. You have been receiving your weekly wages and WorkCover is likely paying your medical bills.

WorkCover claim comes to an end

In theory, WorkCover must continue to pay your weekly wages as well as your medical bills until you can either go back to work, your injury becomes stable and stationary or until you reach the maximum payable compensation amount.

In practice, however, after about a year on workers’ compensation payments, in many instances WorkCover will start looking to close your claim. The reason for this is simple: they want to save money and so they want to cut off your payments.

The way in which WorkCover will try and close your claim is by sending you to an independent medical examination (“IME”). This is an examination carried out by a specialist who is paid by WorkCover. This is not your treating doctor.  The job of this specialist is to determine whether your injuries have become stable and stationary. We have written a dedicated article about independent medical examinations.

Injuries stable and stationary

If your injuries are stable and stationary, then WorkCover can close your file.

It is important to appreciate that just because an injury is stable and stationary does not mean that it has healed. It simply means in the foreseeable future it won’t get better or worse.

The reality is, in many cases WorkCover’s doctor will report that your condition is stable and unlikely to improve. This is then enough for WorkCover to close your file. When they do so, this means that your statutory workers’ compensation claim has come to an end. However, this doesn’t mean you are out of options – further on this below.

Lump sum compensation offer

If WorkCover’s doctor reports that you have suffered a degree of permanent impairment then WorkCover will offer you a lump sum compensation payment. The amount of this compensation payment is worked out based on a formula.

The formula is set out in legislation.  Essentially, you work out the lump sum offer by multiplying the maximum statutory compensation payable by your percentage impairment.

For example, if the WorkCover doctor believes that your degree of permanent impairment is 5%, then WorkCover will offer you $21,114.61 which is worked out as follows: $422,292.25  x 0.05. (Keep in mind, the maximum statutory compensation only applies to the statutory phase of your WorkCover claim. There is no such maximum in a common law damages claim. Also, the maximum statutory compensation amount is indexed every year. The figures in this article apply in the 2025/2026 financial year.)

The problem is the lump sum compensation offer which WorkCover might offer you at the end of your WorkCover claim is insufficient to properly compensate you.

For example, how long will you stay afloat if you can’t work but WorkCover offers you only $21,114.61? This is why for many people a common law damages claim is the only real option. Many of our clients with 5% permanent impairment recovered well in excess of $200,000 (or more) in damages in the common law claim. In fact, according to data released by the Queensland Industrial Relations Commission, the average common law damages settlement is just under $190,000.

What to do if WorkCover wants to close your claim?

Here is the most important thing to keep in mind: Unless you have suffered very serious injuries, if you accept WorkCover’s lump sum compensation offer, then you lose your right to make a common law damages claim against WorkCover. Never accept the lump sum compensation offer without seeking legal advice first.

Why is this important? Even though WorkCover’s lump sum offer may provide temporary financial relief, if you have suffered injuries which will impact you for your working life, then only a common law claim will provide you fair compensation. You should not give up that right.

Why is a common law damages claim worth more?

When you make a common law damages claim against WorkCover (after your statutory claim has closed) you can seek compensation for things that WorkCover would not otherwise be liable to pay you during the statutory claim. (This can be a little confusing, but even though WorkCover closes your statutory claim, if you recover additional damages in the common law claim, that’s also paid by WorkCover.)

Let’s take a look at what you can claim in the common law claim. For example, in the statutory claim WorkCover must pay you your weekly wages. When the statutory claim ends, the weekly wage payments also end. But what if you cannot return to work? The consequence is that you are going to loose wages going into the future. This is called future economic loss.

In the common law damages phase, you can seek recovery of your future economic loss. If you think about it, if you still have 10, 15 or 20 years before reaching retirement age, but you can’t return to work then there is a significant future economic loss claim which you can recover. We have created a useful guide which illustrates how future economic loss can impact your claim and you can download it free.

Even if you can return to work, if you are unable to work as much as you used to, then you can claim damages for your reduced earnings.

Usually, in a common law damages claim the future economic earnings loss is by far the biggest component of the damages claim.

What do you need to do to start a common law damages claim?

Immediately after receiving from WorkCover a document called Notice of Assessment, we recommend you consult us here at Denes Lawyers, as we specialise in Queensland personal injury and workers’ compensation law. We will give you advice at our very first meeting if you can make a damages claim, and how much you are likely to recover. Our meeting is free of charge.

If you decide to then go ahead with your WorkCover Queensland common law damages claim, we will take all necessary steps on your behalf. We will issue a Notice of Claim for Damages which we will give to WorkCover.

Thereafter, we will fully conduct your claim. This means that, unlike in the statutory phase, where you correspond directly with WorkCover, this time you need not communicate with WorkCover at all. All communication will be through us, so as to make the experience completely stress free.

We will spend approximately 6 months to obtain all relevant evidence in your claim.

We will also use this time to obtain our own medical evidence in relation to your injuries. We do not rely on WorkCover’s doctors. We have a range of medical specialists that we commonly use when we build our clients’ cases.

When we have obtained all evidence then we will attempt to settle your matter with WorkCover. The vast majority of claims settle out of court and a few proceed to trial.