Workers Compensation Insurance
Workers Compensation is a complex insurance area and is compulsory; given the significant cost to most businesses it is smart to ensure the Workers Compensation Insurance is set up in the most effective way.
Workers Compensation is governed by different legislation in each state of Australia which dictates the cover that insurers must provide in their policies. The legislation outlines the benefits payable and circumstances, duration of benefits and the employee’s obligations. The legislation is periodically altered to create a balance between cost to business owners and providing a fair system to help workers recover and return to work after an injury.
Several factors can impact on the employer’s Workers Compensation Insurance cost. The claims history typically provides a discount or loading, creating an employer incentive to maintain a safe workplace. The premium charged is usually based on the estimated wage roll; however the wage figures you need to declare varies amongst different worker categories and some may not need to be insured at all.
Workers Compensation claims management is important: it is in everyone’s interest to get an injured worker back to work as soon as possible. Poorly managed claims often result in deterioration in relations between employer and employee, sometimes culminating in a long term work absence. Whilst the insurance covers the wages during this period the employer is short staffed and incurs a large claim payment on the claims history. A well managed and proactive claims management system encourages workers’ prompt return to work and reduces overall cost to the business.