Imagine one of your employees suddenly suffers a severe injury. It’s the last thing any business owner wants to imagine. There is both the emotional turmoil of seeing one of the smiling faces you’ve grown accustomed to around the office suffer a devastating injury, and the practical problem of having to find another person to fulfil the role.
There is also the question of whether you’ve breached the law by not providing your employees with Workers’ Compensation Insurance.
The answer is yes; you must provide workers compensation insurance through an improved insurer.
Workers’ compensation insurance is regulated by the state government. In NSW, insurers operate as scheme agents on behalf of the government authority.
Workers’ compensation insurance is a form of insurance for all employees that protects workers if they suffer a work-related injury or disease.
Any business that employs or hires workers on a full-time, part-time or casual basis, under an oral or written contract of service or apprenticeship, must enter a workers’ compensation insurance arrangement that covers every employee.
Independent contractors often require their own insurance as they negotiate their own arrangement with an employer.
How It Works
If one of your employees is afflicted by a workplace injury or disease such as in the example above, the workers’ compensation scheme can provide them with various benefits.These include; weekly benefits, rehabilitation services, medical and hospital expenses, certain personal items and a lump sum payment for permanent impairment on the basis set by the particular scheme.
Exempt Employers
If you’re just starting out in your own business, and you pay less than $7500 or less per year in wages, you don’t employ an apprentice or trainee and you are not a member of a group for premium purposes, then you’re not required to take out a workers’ compensation insurance policy.
However, even if you are exempt you will still retain the same obligations to provide aid with injury management and return to work. This includes calling 13 10 50 to report any workplace injuries.
Getting Started
To get your staff covered by workers’ compensation insurance, the first thing you need to do is contact an insurance agent who can issue workers’ compensation insurance policies.
They will determine what your premiums might be and organise your insurance.
You will then be issued with a certificate of currency which provides evidence that you’ve maintained an approved policy of workers’ compensation insurance.
Your insurance will run for 12 months from the time you contact an insurance agent. Your insurance agent will cancel your policy if you sell your business or you cease trading
Complete the above steps and you’ll be well on your way to having a workers’ compensation insurance arrangements, fulfilling your legal obligations and protecting your employees from unexpected financial hardship.
Unsure where to start? Contact a LawPath consultant on 1800LAWPATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.
