It is no secret that if you are a business owner with employees, workers’ compensation insurance is necessary. Even though you do everything within your power to maintain a safe work environment for yourself and your employees, unforeseen events happen.
This is when your workers’ compensation policy will 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. Each state and all territories have specific details regarding what business owners must provide and necessary amounts of cover. These may differ based on work-related risks and pay rates. Businesses choosing not to comply risk fines of thousands of dollars as well as a sullied reputation in the business world.
In the event of an accident, workers’ compensation policies protect both you and your employees. Prior to workers’ compensation, injured workers had no recourse except to sue their employers for wages and damages in the event of a workplace accident.
Australia’s workers ‘compensation laws are no fault. This means that there is no burden on the injured party to prove any negligence in order to collect on the policy. The injured party only must prove a few simple things:
- The person seeking workers’ compensation is a company employee
- A qualified medical practitioner must diagnose the worker’s condition and state formally that the workplace caused the problem
- The worker seeking compensation must incur a financial loss either from accumulated medical bills, lack of income due to the illness or injury, or both.
Are There Many Claims in Australia?
No matter how careful you and your employees are, accidents happen. While we have an overall decline in claims from 2006-2007 through 2015-2016, Safe Work Australia data still shows a significant number of workers’ compensation claims.
Serious Claim Statistics (2016-2017)
- Workers filed 106,260 claims for serious injury or illness
- The median number of weeks missed by those filing was 5.6 weeks
- The median dollar amount paid per claim was $11.500
- The frequency of workers’ compensation claims was 5.6 claims for every million hours worked
Gender Specific Serious Claim Data (2016-2017)
The frequency of serious workers’ comp claims per million hours worked made by:
- Male Employees – 6.2
- Female Employees – 4.9
Median number of weeks lost:
- Male Employees – 5.4 weeks
- Female Employees – 5.8 weeks
Median amount of compensation paid:
- Male Employees – $12,400
- Female Employees – $9,900
Fatalities from work related injuries:
- Male Employees – 176
- Female Employees – 14
Top 5 Causes of Workers’ Comp Claims
- Strains and stresses on the body – 38%
- Tripping, falling, or slipping – 24%
- Struck by one or more moving objects – 16%
- Striking an object with a part of the body – 8%
- Emotional and mental stress – 6%
Who Needs Workers’ Comp Cover at My Place of Business?
All states and territories in Australia have specific details, but generally, the following groups should have workers’ comp cover.
- Full-time employees
- Part-time workers
- Casual workers
- Task or pieceworkers
- Commission workers
- Contractors or subcontractors (Members of this group may carry their own cover)
What Benefits Should My Injured Worker Receive?
- Reimbursement for medical treatment. This typically includes but is not limited to ambulance services, hospital, diagnostics, treatments, therapy, and medical appliances
- Income replacement for wages lost while unable to work
- A return to work plan. These plans typically come from physiotherapists and occupational therapists and often include rehabilitation, modification of job duties, modification of the work area, and retraining if necessary
- Compensation for permanent damage such as the loss of a limb, blindness or irreparable compromised sight, loss of hearing, the loss of quality of life, loss of bodily abilities such as walking or speaking, pain and suffering, disfigurement, and a reduction in life expectancy. This compensation usually is a lump sum payment.
- Death benefits including funeral expenses
No employer wants their employees to suffer because of an accident. By having appropriate workers’ compensation insurance, you can make certain your employees have the cover they need if the unthinkable happens.