Psychosocial Risks: The Fastest Growing Liability in Australian Workplaces
Psychosocial risks aren't new, but the spotlight on them is.
And it's getting brighter by the day.
In 2024, psychosocial risk officially became the fastest growing liability in Australian workplaces. While physical safety has long been a WHS priority, it's the invisible threats that now pose the most serious financial, legal, and reputational consequences for employers.
The Data Speaks: Australia Is Underprepared
Safe Work Australia reports that mental health-related workers compensation claims have doubled in the past decade, with median claim costs exceeding $55,000 - 3 to 5 times higher than physical injury claims.
These claims also result in time off work up to five times longer.
The construction industry alone loses $11 billion annually due to poor psychosocial risk management.
Claims involving bullying, harassment, or exposure to occupational violence are rising, particularly when there is a clear antagonist.
In many cases, the harm isn’t just internal stress - it’s an external threat.
Yet, many businesses still rely solely on EAPs or internal HR processes to address these risks. While well-intentioned, these tools aren't designed to handle urgent, escalating threats involving real people, reputational damage, or legal exposure.
Threats Aren’t Always at Work, But They Still Affect Work
Not all psychosocial risks originate in the workplace.
Domestic violence, stalking, coercive control, and malicious threats can happen outside office hours — but their impact shows up at work.
1 in 6 women and 1 in 16 men in Australia have experienced partner violence.
61% of women experiencing domestic abuse are employed during the abuse.
Threats often continue into the work environment: physical intimidation, digital surveillance, unexpected visits, or online harassment.
These threats create silent operational risk: presenteeism, absenteeism, disengagement, or breakdowns in team dynamics. But most employers only learn about the issue after it's escalated.
That’s where Safety Assist comes in.
The New Model: Early Activation Without Escalation
Safety Assist is a tool for both employers and employees, giving them access to wide-ranging crisis services before a situation spirals. It provides a confidential way to connect with professional support, without needing to go through HR or formal channels.
Support includes:
Trauma-informed counselling
Police liaison and threat planning
Temporary relocation and accommodation
Physical security measures
Cyber and privacy protection
Crisis legal support
Post-incident debriefing
Often, the business never needs to be directly involved unless escalation becomes necessary. This removes liability from the business, supports the employee, and reduces the risk of compounding harm.
Case Snapshot: Silent Threat, Strategic Support
A staff member experiencing escalating threats from an ex-partner didn’t feel safe disclosing it to her employer.
Using her Safety Assist access code, she privately activated support including trauma counselling, temporary relocation, physical security upgrades, and a threat assessment plan. The employer was never formally notified and never needed to be. She continued working safely and productively, and the business avoided reputational or legal consequences.
Conclusion: Modern Risks Need Modern Protection
Psychosocial risks are not just about stress and anxiety, they’re often about threats involving other people. These are harder to manage, more costly to resolve, and far more likely to escalate if ignored.
Traditional insurance doesn’t cover this. But VUCA Risk does.
Our products protect against the modern liabilities Australian workplaces now face and give businesses and their people a way to act early, stay safe, and avoid becoming the next cautionary headline.