What Should Tradies Know About Workers Comp?

If you run a business and employ people, the law says you must have workers compensation insurance for them. Even when you do everything you can to keep your work safe, accidents happen. This is when your workers compensation policy can protect you and help your employees.

Why is workers compensation insurance a good idea?

Ultimately, workers comp insurance is more than a good idea; it is required by law throughout Australia. Under Australian law, employers must have insurance to cover their workers in case they get sick or injured because of work (Safe Work Australia). Each state and territory has its own scheme, with specific details regarding what business owners must provide and the cover they need. These may differ based on work-related risks and pay rates. Businesses choosing not to comply risk fines as well as a sullied reputation in the business world. In Western Australia, for example, WorkCover WA sets out the penalties for an uninsured employer (WorkCover WA).

In the event of an accident, workers compensation policies help protect both you and your employees.

Workers compensation schemes are generally no-fault. In NSW, for example, SIRA's guide for employers explains what a worker needs to show for a claim, and the insurer decides whether a claim is accepted (SIRA). The tests differ between states, so check with the authority where you work.

Are there many claims in Australia?

Even careful businesses have accidents. Safe Work Australia publishes national figures each year on serious workers compensation claims: how many there are, how long workers are off and what causes them. Read the latest in its Key Work Health and Safety Statistics Australia report.

Who needs workers comp cover at my place of business?

Each state and territory sets its own rules. In WA, for example, WorkCover WA says the law's definition of a worker is very broad, so check its employer FAQs for who it includes before you decide someone doesn't need cover.

Other states differ. To check the rules where you work, contact the workers compensation authority in your state or territory. Safe Work Australia keeps a list of the authorities and their contact details.

What workers comp can pay for, in short

Depending on the injury or illness, Safe Work Australia says workers compensation may cover some wages while the worker recovers, medical, hospital and rehabilitation costs, a lump sum for a permanent impairment, and funeral expenses and support for dependants if a worker is killed (Safe Work Australia). For the detail, read what workers compensation covers.

No employer wants their employees to suffer because of an accident. With workers compensation insurance in place, you meet the requirement to insure your workers, and they can claim under the scheme if the unthinkable happens.