WHEN DO YOU KNOW IF WORKERS COMPENSATION INSURANCE IS REQUIRED?
The easiest answer is if you employ anyone, paying them for their services in any way then yes, you would be encouraged to obtain Workers Compensation by Inspired Insurance Services. This particular cover is required by law if you have employees in almost any capacity.Workers Compensation provides a business who has employees with protection for many of the expenses that are incurred in the event of a workplace incident. There is an added consideration called ‘Common Law’ which provides lump sum compensation payments in instances where a workplace accident is classed as severe and meets a number of requirements.
So how does Workers Compensation work?
Firstly, the main areas that need to be confirmed are:
- Type of business that you are involved in
- How long the business has been operating
- Estimated number of employees you have or think you will have
- Amount of wages applicable to the employees
- Have any claims previously been experienced
For a complete guide, we recommend obtaining the publication from WorkCover titled ‘Workers Compensation A Guide For Employers’. You will find the link to the WorkCover site on our ‘Useful Links’ page.
Workers Compensation is one Insurance cover that can have a severe impact on your business if a claim occurs and is not managed properly.
Worker with Injured Shoulder
If a claim is poorly handled, the cost of the claim can be unnecessarily high and the employee may not be provided with the appropriate services in order to get them back to work. High claim costs do impact on the premium and this is specifically to your business. Insurers can currently load the ‘Gazette Rate’ up to 75% should this be warranted. Insurers can load the ‘Gazette Rate’ more than this. There are procedures that need to be followed and authority obtained if they sincerely believe a higher amount is warranted.
What if I operate a business that only utilises Contractors / Sub-Contractors?
This can be a contenious issue. Different advice is often given depending on if you speak to an Insurance Specialist or a Finance Specialist. As Insurance Specialists, we can offer the correct guidance however, we also recommend seeking further advice from the authority and then potentially seek legal advice. WorkCover, who is the authority in this area provide guidence notes . You can find the link on our ‘Useful Links’page.
The Costs of Workers Compensation Claims
Examine the bottom line of your business and see what your Workers Compensation insurance is costing you after a poorly managed claim occurs.
Did you know that it is a requirement to have an Injury Management Plan and Return To Work Policy. While Inspired Insurance Services recommends the services of specialists in this regard, templates are available from the WorkCover web site.