Preventing & Preparing for Mental Health Claims
Last week at TalentX, Kathryn and I delivered a session on Preparing for Mental Health Claims – Cost-Effective Strategies for Managing WHS, Mental Health Claims and Supporting Teams.
With mental health conditions now making up 9% of all serious workers’ compensation claims, and the average cost significantly higher than physical injuries, businesses need more than empathy. They need a clear, structured approach. That includes understanding their preventative duties under WHS law, such as identifying psychosocial hazards, consulting with workers, conducting risk assessments, and putting control measures in place before an injury occurs.
Managing mental health at work isn’t just about responding to claims, it’s about reducing the risk of them happening in the first place.
Here are a few of the key messages we covered:
📈 Mental injury claims are rising—and they’re expensive
Since 2017–18, serious claims for mental health have increased by 36.9%. These claims cost more, last longer, and return-to-work rates are significantly lower unless managed early and well.
💡 We shared two real-world case studies with dramatically different outcomes
In one, poor planning and delayed treatment resulted in a claim capped at $479,000. In the other, early intervention and structured support reduced the cost to just $41,800. The difference? Leadership, preparation, and timely action.
⚖️ WHS obligations apply when work contributes to mental health issues
This includes consulting with workers, identifying psychosocial hazards, implementing reasonable adjustments, and monitoring outcomes. It's not just policy, it's a legal duty.
🧠 Responding to disclosures requires more than good intentions
We often see businesses freeze when a worker discloses a mental health concern or lodges a psychological injury claim. There’s a real fear of getting it wrong—some leaders worry they shouldn’t reach out, others don’t know what to say, and many are unsure about the legal boundaries. But avoiding the conversation can lead to delays, distrust, and a breakdown in recovery.
In our session, we covered how to identify and manage psychosocial risks, and how to respond to mental health claims with a clear, supportive, and legally sound approach.
We work with clients to apply a practical and impactful approach that supports workers during vulnerable moments, equips managers to respond with clarity, and protects the business from avoidable cost blowouts.
A key message we shared: this isn’t something you start focusing on once a claim is lodged. By then, you’re already behind. Businesses must have systems, culture, and capability in place before an issue arises, so they can prevent harm, respond early, and manage risk effectively.
It’s an approach that improves worker experience, builds leader confidence, and impacts your bottom line, without overcomplicating the process.
Article by Amy Towers, Director – WHS, People & Compliance – helping businesses navigate compliance with confidence.