Workers Compensation Insurance

The Safe Work Australia Act 2008 was established to protect workplace safety and health. One of the provisions of the legislation was a worker's compensation requirement. The law was passed by the federal government, but territories were responsible for setting the coverage requirements. Every business must have workers compensation insurance for employees. Businesses don't generally need to purchase insurance for independent contractors, except in South Australia. However, some exceptions apply. The insurance must offer a wide range of coverage for employees that could be injured while working. However, there are some nuances that they may not need to be covered for. Employers must provide coverage for employees travelling to and from work in NSW, Queensland, South Australia and the Australian Capital Territory. Work-related travel and onsite breaks must always be covered in every territory. Breaks taken offsite must also be covered in every territory except South Australia and Tasmania.

Compensation requirements vary slightly between jurisdictions. Every territory except Tasmania requires worker's compensation to cover overtime. The entitlements for regular work are tiered to the duration of the benefits. For the first 13 weeks, compensation is between 85% and 100% of typical weekly wages. The only states that don't guarantee 100% coverage are NSW, Victoria, and Queensland.

There are some other entitlements that must be provided under Safe Work Australia. Here is a summary. Permanent impairment The worker's compensation scheme must cover compensation for incidents leading to permanent impairment. In NSW, employers must provide coverage of $577 050 for injuries on or after August 5, 2015. They must provide coverage of $220 000 for injuries prior to this date. An additional 5% is added to the award if the injury involves back impairment. The coverage requirements for other territories are listed below:

Medical and hospital Every compensation scheme must also provide coverage for medical and hospital care. Most territories don't have monetary limits on care, but coverage for non-serious conditions is limited to one year in Tasmania and South Australia. Victoria ceases medical and hospital treatment 52 weeks after premiums are discontinued.

Every territory also has penalties for uninsured employers. Here is a summary:

Penalties are severe to discourage employers from failing to pay for insurance.   Every case is unique. If you need specialist advice on what coverage you need then contact a trusted insurance advisor in your area. Find insurance brokers.