There are a lot of misconceptions about workers compensation insurance.
But with a single claim having the potential to cost your business hundreds of thousands of dollars and major penalties applying for failure to meet your obligations, it’s your business that’s on the line.
WorkCover WA’s new campaign for business owners takes a closer look at a few of the ‘pretty sures’ that we often see tripping up employers to help you protect what matters: your workers and your business.
Because it’s not good enough to just be ‘pretty sure’ you’re meeting your insurance obligations. Click on the images below to learn more.
Learn about employer obligations. Protect your workers |
Learn about business insurance. Business Insurance |
Learn about public liability. Public Liability |
Protect your workers
All employers in Western Australia are required to have workers compensation insurance coverage for anyone defined as a worker by law.
This cover protects you from the cost of a workers compensation claim – including the costs of income compensation payments and medical expenses. Without insurance, you are fully liable for all costs associated with the claim, which could run into the hundreds of thousands of dollars.
It’s a legal requirement for all employers to hold workers compensation insurance. Penalties of up to $10,000 per worker apply for employers who are not insured.
If you don’t have cover:
For more information, including the full list of licensed insurers you can contact, click on get a policy
For more information about who you need to cover – visit the covering your workers page or call our Advice and Assistance Service at 1300 794 744.
Business insurance packs typically do not include workers compensation insurance.
It’s an understandable mistake to assume workers compensation insurance would be included in a package of business-related insurances. However, workers compensation insurance is typically purchased as a stand-alone product.
When you take out cover, your proof of insurance is an insurer-issued Certificate of Currency, which specifies the insured entity and policy coverage period.
Don’t just be ‘pretty sure’. Be sure. Here’s how:
Confirm you have workers compensation insurance by checking if you have a Certificate of Currency issued by a licensed insurer.
If not – get a policy now.
Public liability insurance does not cover workers compensation claims.
Different insurances will cover different situations for your business – so it’s normal to have a few policies in place. Unfortunately, a common mistake for employers is to mistake their public liability insurance for workers compensation insurance when they are actually completely separate products.
If you only have public liability insurance, you are not covered in the event of a workplace injury or illness.
If you’re only ‘pretty sure’ you took out workers compensation insurance:
Confirm the cover you have is workers compensation insurance and not public liability insurance by checking if you have a Certificate of Currency for workers compensation insurance issued by a licensed insurer.
If not – get a policy now.
Workers compensation insurance does not automatically renew.
It’s your responsibility to maintain a current policy of workers compensation insurance at all times while employing.
Your policy coverage period is specified on your insurer-issued Certificate of Currency.
Unlike other insurances, workers compensation will not renew automatically because every year you need to provide your insurer with a remuneration statement of the total wages paid to your workers. You must then confirm renewal if you are satisfied with the policy terms and premium payable.
You’ll know your policy is renewed once you receive a new Certificate of Currency reflecting the renewal period.
Top tips:
- Set a yearly reminder to alert you a few weeks before your current policy expires to remind yourself to make sure you have ongoing cover
- Keep your contact information with your insurer up to date so you don’t miss any renewal correspondence
- If you forget to renew, the most important thing to do is get a new policy as soon as possible.
You must provide workers compensation insurance cover for anyone – including family members – who fit the definition of worker by law.
The definition includes:
- Full-time workers on a wage or salary
- Part-time, casual or seasonal workers
- Workers on commission
- Piece workers
It may also include contractors and subcontractors depending on the working arrangement.
If you’re not sure if you need cover:
Call our Advice and Assistance Service to discuss your obligations.
For more information, visit the following pages on our website:
- Understanding your rights and obligations
- Covering your workers
- Getting and managing your insurance policy
For a comprehensive guide to employer obligations, see our employer publications
Would you rather have a chat with our team? Call our Advice and Assistance Service at 1300 794 744 on Monday – Friday between 8:30am – 4:30pm.