What is Workers Compensation?

Workers Compensation covers workers financially who become injured and can’t work at full capacity.

Who needs it?

Workers Compensation Insurance is a compulsory insurance that all employers must have for their workers.

The definition of a worker varies slightly for each state in Australia, however generally workers include anyone receiving a wage or commission from your business, including casual employees, temporary employees and sometimes even contractors.

If you’re unsure if you should get Workers Compensation insurance, you can visit the WorkCover NSW website at www.workcover.nsw.gov.au or contact a similar body in your state.

What does Workers Compensation include?

Workers Compensation generally covers:

  • A percentage of injured workers’ wages for the period of time they are unfit to work,
  • Compensation for lost earnings for workers who are forced to work at a reduced level due to an injury,
  • Payment of medical, hospital, chemist and other treatment costs related to a work injury,
  • Costs involved in rehabilitating an injured worker so they can return to work.

There is a variety of Workers Compensation Schemes in Australia. In general, either an Insurer or the Workers Compensation authority in the state issues policies, collects premiums and manages claims for injured workers.

Important tips

  • If one of your workers is injured, you have a number of responsibilities including; reporting the injury, assisting the worker to return to work and cooperating with the insurer and other service providers,
  • The effect of a claim can be quite significant on your premium. Maintaining a safe workplace and having an up-to-date Return to Work program can save you considerable costs,
  • Consult with your broker to ensure you always have the right information for your business, wages records and obligations as an employer as Workers Compensation premiums can be complicated.

To find out more about Workers Compensation, contact one of our experts today.