Workers Compensation protects you financially in the event that a workplace incident causes physical injury or psychological suffering. Workers Compensation can generally be claimed if the incident takes place at work, while travelling for work, or on your way to and from work. This blog will discuss what workers compensation insurance is, whether your business needs it, what it covers and how the premiums are covered. If you want more information on making a workers compensation claim, please click here. 

What is workers compensation insurance?

Workers Comp is a business insurance policy that will cover yourself and your workers from financial hardship in the event of injury or illness. It is a compulsory statutory form of insurance for all employers in every state and territory within Australia. It provides protection to workers if they suffer from a workplace injury or disease. If your business hires workers on a full-time, part-time, casual basis, or as an apprentice should have full workers compensation insurance. 

Explain that workers comp insurance is a form of business insurance policy that will cover yourself and your workers from financial hardship in the event of injury or illness. 

Do I need workers compensation insurance?

For every state and territory in Australia, workers compensation is mandatory. Each state government regulates the workers compensation within that state. While the rules, regulations, and monitoring are different for each state, it is still compulsory for every workplace to have workers compensation insurance. Insurers might have different rules in each state. In WA, TAS, NT, and ACT, insurers privately underwrite the scheme. In NSW, VIC, and SA, insurers operate as scheme agents on behalf of their respective governments. In Queensland, workers compensation insurance is operated entirely by the state. 

What does workers compensation insurance cover?  

Workers compensation insurance covers the wagers of the workers if they suffer a work-related injury and cannot work because of this. Workers compensation insurance is intended to cover medical expenses, treatment, and rehabilitation costs. The compensation insurance will do this by providing the injured worker with weekly benefits, medical and hospital expenses, rehabilitation costs, personal items, and if it is a permanent impairment, it will be a lump sum payment. 

How are workers compensation premiums calculated? 

Workers compensation premiums are calculated based on a formula that differs from state to state. The premiums are mandated by regulators in that state. Generally, the formula is based on the amount of wages employers pay their workers, as well as what industry the business operates in and the claims history of the workplace.  

In summary, yes it is compulsory for businesses to have workers compensation insurance. This is to protect employees and ensure that if something should happen while they are at work, they are able to receive the help and medication they need, as well as any rehabilitation necessary. If you think you have a workers compensation claim, please fill out this form by WMCW so that we can help you with your claim.