Workers Compensation Insurance and Tradies

Working hard, solving problems, and untangling complex situations are all in a day?s work for tradies. Regardless of the trade you specialise in, your hands are full from dawn to dusk and beyond. This begs the question; do you have the spare time to spend researching the ins and outs of Workers Compensation Insurance? If you are like many tradies, the answer to that question is a resounding no.You may already know that business insurance can be exceedingly complicated. Workers Compensation Insurance is no exception. Because the cover is mandatory in all Australian states and territories, you must get the right coverage.

Must I Carry Workers Compensation Insurance if I Run a Small Trades Business With Just a Few Casual Workers?

There is a common misconception that tradies who occasionally have workers to give them a hand with specific jobs do not need to have Workers Comp cover. However, if you have workers who assist you on a ?full-time, part-time, seasonal, or casual basis, under an oral or written contract of service or apprenticeship,? Workers Compensation insurance is a requirement.

What Determines the Details of My Workers Comp Insurance Policy?

Your Workers Comp cover will vary based on several factors including:

• The location of your business- Where your company operates makes a significant amount of difference when it comes to the specifics of your Workers Comp cover. This is mainly because each state government is in charge of regulating the Workers Compensation scheme within its boundaries. States control the role insurance companies have in their jurisdiction.
• Contractors and subbies- If you have subcontractors and contractors working on your job site, they may have their insurance which makes Workers Comp cover unnecessary. Be sure to check with an insurance professional before altering your policy based on what you believe to be true.
• Essential facts about your company- Your safety record, number of employees, your industry, claims history, and payroll amounts may all be taken into account when determining your policy premiums

Seven Workers Compensation Insurance Facts Every Tradie Must Know

Even if you believe you completely grasp all of the ins and outs of Workers Compensation cover, you will do well to look over these seven points regarding the insurance.

1. The main focus of Workers Compensation Insurance is the injured worker?s return to health as well as their return to gainful employment.
2. All Australian employers must carry Workers Compensation Insurance for employees. This includes full-time, part-time, casual, or seasonal workers as well as trade apprentices.
3. Employers have a legal obligation to provide all employees with a written copy of the contract outlining their Workers Compensation details.
4. The Workers Compensation contract shall include the details of the insurance as well as any specific conditions or limitations.
5. Each Australian state is in charge of its Workers Compensation scheme.
6. When a worker accepts their company?s Workers Compensation package, the employee voluntarily voids his or her right to take legal action against their employers for oversights, neglect, or other failures to maintain employee safety.
7. After a successful claim approval, the worker receives their payment according to the state's Workers Compensation Insurance scheme.

I Am a Tradie Who Works Alone; Do I Need Workers Comp Cover?

If you are the only person working in your business, then you are not eligible for coverage with a Workers Compensation policy. This is because you are not considered an employee and cannot insure yourself with Workers Comp cover. It is important to remember that should you hire another person to work for you in any capacity, including an apprentice, you will be their employer and are responsible for obtaining Workers Compensation. The policy will only cover your workers.For Example, Randy?s landscape business had been a one-person operation for several years. He now needs employees to keep up with his customer requests. He hires Damon and Joe to help part-time.Randy is now considered an employer and must provide Workers Comp cover for Damon and Joe. However, the policy Randy purchases will only cover his employees.

What Insurance Should a Sole Trader Consider?

Several business insurance policies can be useful for a tradie who works as a ?one-man-band.?These include the following:

• Income Protection Insurance
• Personal Injury Insurance
• Public Liability

To learn more about the insurance products that can give you peace of mind as well as satisfy Australian mandates, contact Tradies 365. Their experienced team of professionals can help you navigate the challenges of Workers Compensation cover along with the other types of business insurance. Save the time, stress, and frustration and allow the experts at Tradies 365 to take care of you.*Please Note* The material in this blog is for informational purposes. It does not constitute legally binding insurance advice and should not take the place of a consultation with an insurance expert.