What is Workers Compensation Insurance?
Workers Compensation Insurance (commonly referred to as Workers Comp) provides financial assistance to workers who suffer a work related injury or illness and are unable to work at full capacity.
Each state government regulates the workers compensation scheme in their state. For this reason premium calculations, compensation amounts and other aspects of the scheme can vary between states.
Do I need it?
Workers Compensation Insurance is compulsory throughout Australia. Therefore, every employer must have Workers Compensation Insurance in place for each of thier workers.
The definition of a worker varies slightly for each state in Australia. Generally, workers will include anyone receiving a wage or commission from your business, including casual employees, temporary employees and in many cases, contractors.
An experienced broker or the workers compensation authority in your state can assist you with information specific to your state and circumstances. State Authority contacts are listed on the Safe Work Australia website.
What does it 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,
- and lump sum payments for permanent impairment on the basis set by the particular scheme.
- 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 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 obligations.
How Coverforce can help
Our experienced insurance brokers can assist you with personalised risk advice and the placement of your Workers Compensation Insurance policy for any Australian state or territory.