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Workers Compensation Insurance and the Law

In Australia, companies that have employees are required to carry workers compensation cover in most cases. Although some exceptions exist, workers compensation is beneficial to companies in many ways; it helps them keep their workplace safer and allows them to handle workers compensation claims with ease.

What is worker's compensation insurance?

There are many kinds of cover that business owners tend to purchase. Insurance that protects non-employees if they are injured at the employers business is called public liability insurance, while professional liability protects the employee from malpractice or a breach of trust. Workers compensation is different from these because it offers to compensate for funds lost due to an employee's injury at the workplace.

Who is a candidate for this type of policy?

Almost every company with employees is required to have workers compensation insurance. With one package purchase, all employees in a particular firm are covered, so business owners do not have to worry about taking out multiple policies. Workers compensation insurance can actually provide an employer with many benefits. First is the fact that each and every workers compensation claim will not mean money out of your pocket. Mistakes do happen. Many times compensation is given for employees who have greatly aided in injuring themselves. This can cause greater financial pain for you if you are not covered.

Each year you will be required to fill out a form stating the wages for the previous year and also estimate the wages for the current year. Your premium is a product of the level of gross wages in the business and you will receive or have a pay an extra amount based on the difference between your estimated wages and the actual level for the prior year. Other factors may also come in play such as risk, type of work, claims history and also the company that provides the cover.

Choosing a Policy

Choosing a worker's compensation policy begins with getting a quote. You can get your quote online—though you can also get it on the phone as well as in person—and begin to make plans from there. Usually, these types of policies do not go through a broker but are done directly with the insurer.
From small companies with a few loyal employees to large chains that are chalk full of employees at any level, workers compensation insurance is a requirement under law if you have employees in Australia. If you use the tools provided for you online, however, you can make sure you are choosing a reliable and tech-savvy workers compensation package.

Other Types of Business Cover