What is Workers Compensation?
Workers Compensation is a compulsory statutory form of insurance for all employers in every state and territory in Australia and provides protection to workers if they suffer a work-related injury or disease.
Who should consider it?
It is a legal requirement for every employer to carry Workers Compensation insurance in the state in which the business is operating and/or the worker is located.
The scheme is unavailable for sole traders and partnerships. However, if those entities employ people a policy is required for any employees.
Note: a “worker” under the Act may also include certain types of contractors you engage.
Did you know?
To encourage the employment of apprentices, grow the nations skill base and improve
workers insurance outcomes through the adequate training of workers, each state offers
an apprentice incentive scheme whereby a premium reduction is provided on wages paid
What can it cover:
Workers Compensation insurance will cover the costs of supporting your injured worker which may include:
- weekly benefits
- rehabilitation services
- medical and hospital expenses
- some personal items damaged in a work-related accident
- a lump sum payment for death or permanent impairment
What isn’t covered:
Injuries arising from the workers’ journey to or from work are usually excluded. Legislation is different in each state though and advice should be sought accordingly.
Some states do not cover company directors unless they are specifically noted on the policy.
Other exclusions will apply and you should review any quote received carefully and consider the policy wording for all policy terms, conditions, exclusions and limitations.