Workers Compensation Insurance Facts

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Updated: March 31, 2020

Many businesses out there are not aware that they have a legal obligation to hold a Workers Compensation policy and are therefore leaving themselves open to large fines, penalties and possible litigation by not having cover in place.

Workers Compensation is cover taken out by employers to cover their workers for injury or illness that occurs due to or in the course of their employment.

Workers Compensation covers the costs of the majority of the wages, all medical i.e. doctors, hospital, ambulance, pharmaceutical, other treatments and rehab required to return the worker to work in their pre-employment role or retraining and job seeking for a new

role if they are no longer fit to carry out the duties required to perform the old one.

How do you know if you should have a Workers Compensation policy in place?

  • Do you employ casual, part time or full time workers, apprentices or trainees?
  • Does your business issue payment summaries at the end of the financial year to anyone including directors?
  • Does your business use subcontractors on a regular basis?

If the answer to any of the above questions was YES then you must have a Workers Compensation policy in place.

Workers Compensation in Australia is managed at a state level, so each state has a different scheme. Some of the schemes have set rates that are charged and some of the states have varying rates set by the insurance company offering the cover. If you operate

in multiple states and territories you may be required to hold cover in more than one.

If you would like any assistance, have any doubt or would like to confirm that you are currently complying with your requirements, please contact Linda Smith from Fitzpatrick & Co. Insurance Brokers on (03) 8544 1665 or [email protected] Linda will go through your current situation and advise accordingly.