Workers compensation insurance provides financial reimbursement to employers for payments associated with an employee’s successful workers compensation claim. This can include wages, as well as additional costs associated with rehabilitation, treatment and medical expenses. A workers compensation claim can result from a workplace related injury or illness.
At All Trades Cover, we offer workers compensation insurance as part of our trade insurance package. Speak to our team for a workers compensation insurance quote.
Compulsory for All Businesses
Yes, workers compensation insurance is compulsory in every state and territory in Australia if you’re an employer with employees. The state and territory governments regulates their own workers compensation schemes and they’re administered differently depending on where you live.
If you live in Western Australia, Northern Territory, Tasmania or the ACT, workers compensation is handled privately through an insurer. In NSW, South Australia and Victoria, insurers act on behalf of the government authority. Finally, in Queensland the scheme is operated solely by the government.
Speak to All Trades Cover today to find out more about workers compensation insurance Australia and how it applies to your business.
In the event of a work-related injury, your insurance policy provides coverage of:
- Statutory workers’ compensation entitlements due to an injured worker; and
- Legal costs, court fees and damages in the event that a common law claim is brought against you by an injured worker Your insurer will also be able to assist you in the management and administration of claims by:
- Advising you on correct claims procedures
- Estimating the cost of claims
- Participating in the injury management process at your request, including facilitating communication between the treating medical practitioner and yourself
- Assisting with return to work programs and identification of claims which may require workplace rehabilitation; and
- Representing you through the conciliation and arbitration process when disputes occur.
The employer’s responsibility includes:
- Ensure workers receive adequate information, direction and training in the work that the worker is required to perform.
- Enable the worker to perform the work without risk to the health and safety of the worker, or any other person.
- Ensure that workplace infrastructure or equipment, and workplace materials are maintained in a safe condition.
- Ensure the safe handling, packaging, storage and transport of chemicals such as dangerous goods and other harmful materials.
- Providing adequate facilities that can be accessed by your workers while at work (such as clean and hygienic toilets and eating areas).
As in each state, there are obligations for the employer to retrain and assist an injured worker back into the workforce.
The rates in Western Australia are set by Work Cover as a recommended rate for each occupation class. At All Trades Cover, we have negotiated a set of discounts for trades that are amongst the best in the state.
In New South Wales the workers’ compensation is arranged through several approved insurers including QBE, Allianz, CGU and GIO. All NSW employers must have a workers’ compensation policy if they pay more than $7500 in wages per annum, employ an apprentice or trainee.
Workers’ compensation provides protection to workers and their employers in the event of a work-related injury or disease. Through the worker’s compensation system, injured workers may have an entitlement to weekly payments, lump sums for permanent impairment, payment of medical bills and intensive rehabilitation assistance.
Employers hire workers in what is called a ‘contract of service’. This means that workers are taken on in writing or verbally to work full time, part-time or on a casual basis. The ‘contract of service’ is an agreement between employer and workers to perform tasks over a set time agreed by the two parties.
A worker can work all day, every day or just a few days here and there, they are still classed as an employee under a ‘contract of service’. This also means a worker can be employed to do a number of roles from managerial positions to casual positions.
It is really important for employers to follow strict guidelines to be compliant when claiming workers compensation.
- Have a current policy covering workers compensation in ACT and display this with information pertaining to the insurer.
- Be compliant with the insurer’s program
- Give all employees access to a document to register their injuries.
- Be able to provide details of wage reports, and information about the injury to the insurer.
- Create a Return to Work Program that has been created by employer and employees outlining rehabilitation providers.
If you are a business that employs workers full time, part-time or on any other basis, you are required to register as an employer with WorkCover South Australia. The South Australia Workers Compensation Scheme is funded by each registered member paying a contribution or a levy each year. Once registered your business will be protected against claims for injuries in the workplace.
Work Cover South Australia, oversees all of the premium Collection, service delivery, and manage the financials of the scheme under the ext
WorkCover holds the financial liability for all claims made by workers employed by registered employers.
All Trades Cover can not assist with the placement of your Workers’ Compensation Insurance in Victoria. However, we have some helpful advice below on if you require the cover and also where you can get the cover.
In Victoria Workers’ Compensation Insurance is also known as Workplace Injury Insurance. Should you employ anyone in the state of Victoria then you must abide by the rules which are listed below:
- Take out WorkSafe injury insurance with a WorkSafe Agent of your choice, which can include Allianz, CGU and QBE Insurance (you may not have to obtain cover should your annual payroll is to be less than $7500).
- However, should you employ apprentices or trainees, then the $7500 or below limit does not apply. You must have a WorkSafe policy irrespective of your annual payroll.
- In the event that your business changes (i.e. a change in staff number or in the type of work your doing) then you must notify your insurer as there may be changes to your classification that apply.
- Changes to your business name or the address of your business must also be notified to your insurer.
- Each year you must revise and check your annual estimated wages (and, if you have any claims, your claims statement). This should be done before the renewal of your insurance policy every year. The insurer will always send a declaration for you to complete.
- In regards to changes in the wage role throughout the year, you must notify the insurer should there be an increase of more than 20% on your original wages estimation.
Before the renewal each year you must ensure that you have confirmed the wages paid for the previous policy period.
- Most importantly pay the premium by the due date!
All Trades Cover can not arrange Workers Compensation Insurance in Queensland. It is run by the local government through WorkCover.
Any business in Queensland that employs workers is required to take cover for these workers through WorkCover Queensland and you it is not an option to self insure by paying any of your own claim costs in Queensland.
Regardless of how many people you employ or even if it’s only a short term employee there is no minimum wage before you must take cover in Queensland. Should your employee meet the definition of a worker, then within 5 days you MUST take cover for the employee through WorkCover and penalties may apply if you do not meet these obligations.
It is possible to take the cover before you employ anyone, just as long as you have all the required information in order to do so.
The accident insurance policy provided by WorkCover Queensland insures you against all statutory and damages claim costs in the event of a work-related injury to your workers. There is no limitations or restrictions on the amounts you can claim on this policy.
Workers Compensation cover is required in Tasmania with the exception of those who have written to the WorkCover Tasmania Board and been granted a permit to self insure.
All Trades Cover can assist with the placement of your Workers Compensation policy in Tasmania. Cover is quick and easy and can be obtained by clicking below.
Employers and Workers
There are a few things employers need to do when it comes to making a workers compensation claim. There are forms that need to be filled out within 48 hours of being notified of the injury. These forms must be easily accessible to employees and filled out correctly to claim.
The employer also needs to record the injury in the Register of Injuries as well as the date and time of injury in a Notice of Injury.
48 Notice Period
It is very important that the employer gives notice of the injury within 48 hours otherwise they could be liable for full compensation costs from the time the employee notifies them to the time the insurer is notified. This money cannot be claimed back on insurance either.
There are a number of steps that need to be taken by employers when it comes to workers compensation claims:
- Notify the insurance company within 48 hours of the worker advising of the injury
- This claim then needs to be documented and sent to the insurer within 7 days
- Now the paperwork is done, the employer needs to assist in creating a Personal Injury Plan with the insurer and run on the job rehabilitation
- It is also vital that payments are made on time and in full to the injured employee
- Depending on the injury to the employee, other work arrangements may need to be made if they want to continue to work within six months.
Financial Stability When You Need It Most
Workers compensation insurance is compulsory for a reason – it gives peace mind to both employees and employers. Having workers compensation insurance in place means that employers can be confident that they won’t need to shoulder 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. With workers compensation insurance, your employer will have the financial support to get back to work sooner.
If you’re not sure whether workers compensation insurance is necessary for your business, contact All Trades Cover for some expert guidance.