What does Worker’s Compensation cover?

What does Worker’s Compensation cover?

As an employer, have you ever found yourself in a situation where you ask yourself - what does Worker’s Compensation cover?

Well, in short, employers are required by law to provide Worker’s Compensation for their employees. Whether they’re full-time, part-time or casual employees, this insurance is compulsory. Large companies often employ experts in Worker’s Compensation, but many SMEs don’t have the resources to hire this expertise.

So, here’s a quick overview of Worker’s Compensation providing the basics you need to know.

What is Worker’s Compensation Insurance?

Worker’s Compensation Insurance provides financial compensation to employees if they suffer a work-related injury or illness. It’s provided by the employer for the benefit of the employee with the terms of the cover based on applicable State or Territory’s specific Worker’s Compensation Act. If you have employees in separate States or Territories you may need a specific policy in each region.

What does Worker’s Compensation cover?

Worker’s Compensation covers a range of injuries that take place at work or are work-related. This can include physical injuries, mental health injuries, diseases and death.

Benefits of this insurance can include weekly living payments, coverage of medical and hospital bills, rehabilitation services, and lump sum payments for permanent injuries.

Eligibility for Worker’s Compensation

Under each State or Territory’s Act, generally speaking all employees are eligible if their injury occurred as a result of their employment activities.

All full-time, part-time and casual workers are eligible for this compensation. Company Directors, Contractors and Subcontractors can be included but is dependant on the respective State or Territory legislation.

The Fair Work Ombudsman provides a useful resource along with a list of these regulators by state or territory.

How to set up Worker’s Compensation for your business

If you’re starting a new business and you intend to hire employees, in whatever capacity, then you need to consider what Worker’s Compensation Insurance you require prior to setting up your business.

What if you’re a sole trader?

Sole traders can’t cover themselves with Worker’s Compensation Insurance, however, they do require it for any of their employees. For themselves, they need insurance that provides cover for accidents, sickness, illnesses, disabilities and death, as well as compensation for lost revenue while they recover.

What if you don’t have Worker’s Compensation Insurance?

Whilst WorkCover or Worksafe makes sure that employees receive all their required benefits under the Act, the financial costs to an employer who doesn’t have this insurance can be substantial. Substantial penalties also exist for not obtaining this insurance.

To discuss what Worker’s Compensation Insurance your business needs or to arrange for insurance as a sole trader, talk to an insurance specialist today and find your local adviser. 

Important Information 

This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice. 

We strongly recommend that you consider the suitability of this information, in respect of your objectives, financial situation and needs before acting on it. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser before deciding whether to purchase any insurance product.

Workers’ Compensation

Workers’ Compensation

While some occupations and industries have a higher risk of workplace incidents and/or fatalities than others, Workers’ Compensation is compulsory for all Australian employers. It provides financial compensation to workers if they suffer a work-related injury or illness.

Contract Works Insurance

Contract Works Insurance

Contract Works Insurance provides cover for any physical damage of works or third party liabilities during construction stages of a project.

Business Interruption Insurance

Business Interruption Insurance

From your family and employees to customers and suppliers, there are a lot of people who depend on your business opening its doors each day.

Find your local Insurance Adviser

Talk to your local Adviser to get advice about your insurance needs and to get a quote