Workers’ compensation insurance is one of those key insurances that you need as an employer. Not only is it compulsory in Australia if you have employees, it also gives both employee and employer peace of mind if the employee were to injure themselves or fall ill whilst on the job. Let’s take a closer look at workers compensation insurance Australia to see why it is so important for tradies with employees.
What is workers’ compensation insurance?
Workers’ compensation insurance is designed to cover the costs associated with a workplace injury or illness. If an employee is injured, falls ill or suffers from mental illness due to work, it’s the responsibility of the employer to support their employees with associated costs. The costs associated with a workers’ compensation claim can be very costly, even for a relatively minor incident. These costs include things such as ongoing wages, medical bills and rehabilitation costs. Workers’ compensation insurance covers you for these costs, provided your employee can prove that their injury or illness occurred as a direct result of their job.
Workers’ compensation insurance is required for all employees, including part time, casual and seasonal workers. In some cases, contractors and subcontractors will also need to be covered under your workers’ compensation insurance policy.
Every state government regulates their own scheme and the way the various schemes are administered varies from state to state. In Queensland, the scheme is run solely through the government. In South Australia, New South Wales and Victoria, insurers operate on behalf of the government, while in Western Australia, Tasmania, Northern Territory and the Australian Capital Territory, the scheme is run privately through insurers.
Why do you need workers’ compensation insurance?
For starters, if you’re an employer with employees in Australia, workers’ compensation insurance is compulsory. And for good reason – it gives peace of mind to employers from carrying the financial burden following a successful claim and employees can be confident that they’ll continue to receive the payments that they’re entitled to. Can you imagine carrying the financial burden for an injured employee? Medical costs, loss of wages, rehabilitation – it all adds up and could end up costing you your business!
When would you make a claim for workers’ compensation insurance?
You would make a claim for workers’ compensation insurance if a workers’ compensation claim was successfully made against you. This could be for something like an employee falling and breaking a bone or hurting their back due to heavy lifting on the job. With a successful claim, you will be covered financially from a number of situations which we will go into more detail with below.
To make your claim, call the friendly team at All Trades Cover and we will be more than happy to help.
What are you covered for with workers’ compensation insurance?
Workers’ compensation insurance covers a number of situations, these include lost wages, medical expenses, ongoing costs associated with recovery and rehabilitation, legal costs and funeral costs.
There are also a number of scenarios that workers’ compensation won’t cover. These include wages for a replacement employee, fines and penalties, safety improvements and third party injury.
How much does workers’ compensation insurance cost?
The cost of your workers’ compensation insurance will vary depending on a number of factors. These include the number of employees you have, the industry you are in, the type of work you do and any prior workers’ compensation claims you may have had. Your rate will then be calculated depending on the risks and historical claims information associated with your specific industry. In general, the cost of your insurance will be your wages estimate multiplied by the industry gazette rate.
In most cases, your state or territories workers compensation scheme will allocate a rate for each industry. Contact us for your workers’ compensation quote today.
At All Trades Cover, we understand that tradies work hard and we want your insurance to work just as hard as you do. We provide easy to understand, hassle-free insurance thanks to our convenient trade insurance package. We’re partnered with the world’s largest insurance and reinsurance marketplace which means we can provide quality insurance cover at a competitive price.
To learn more or for your workers’ compensation insurance quote, contact All Trades Cover today on 1300 826 850.