Accidents in the workplace can happen. According to Safe Work Australia’s national data report, there are over 110,000 serious workers compensation claims made each year.
As an employer, it is your responsibility to ensure your workplace is safe and that you obtain a Workers Compensation policy that adequately covers your employees in the unfortunate event they sustain an injury at work or become sick because of work.
At Coverforce, our specialist in-house claims team are here to support you and your injured workers through the claims management process. Our expert insurance brokers will assist with personalised risk advice and the placement of smart, cost effective Workers Compensation Insurance cover for your employees.
What is Workers Compensation Insurance?
Workers Compensation Insurance is an insurance scheme managed under state-based legislation that provides financial assistance to employees who sustain an injury at work or become ill from their work.
The schemes and their regulations can vary and be administered differently between states, however a 'worker' will generally include anyone receiving a wage or commission from your business, including casual employees, temporary employees and contractors.
Do I need Workers Compensation Insurance?
Workers Compensation Insurance is compulsory throughout Australia. Therefore, every employer must have a Workers Compensation Insurance Scheme in place for each of their employees.
- If you are unsure about the conditions for your state, you can contact your Workers Compensation State Authority listed on the Safe Work Australia website.
What does this Insurance cover?
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
- Lump sum payments for permanent impairment on the basis set by the particular scheme
Note - The scheme is managed under state-based legislation. For this reason premium calculations, compensation amounts and other aspects of Workers Compensation insurance can vary between each state.
Important Tips for Employers
- As an employer, if one of your workers is injured it is your responsibility to report the injury, assist the worker return to work and cooperate with the insurer and other service providers.
- The effect of any 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 a qualified insurance broker who understands the scheme in your state for advice on setting up your policy correctly. Penalties can apply for employers not meeting their workers compensation obligations.