Getting to grips with workers’ compensation insurance
Workers' compensation insurance is a complex area, but it is vital that construction businesses ensure they are adequately covered because it is a compulsory requirement.
This type of insurance means your employees will receive wage replacement and medical benefits in the event they become injured during the course of their duties. Due to the nature of the construction industry, this is not an uncommon occurrence!
Safe Work Australia figures show there were 13,735 successful workers' compensation claims for serious injuries in the construction sector in 2011-12. In fact, the sector was responsible for 11 per cent of all serious workers' compensation claims between 2007-08 and 2011-12.
As such, you must be adequately prepared for these circumstances by investing in workers' compensation insurance that is tailored to your specific business requirements.
Each state and territory has its own rules and regulations regarding workers' compensation, which means organisations may have different obligations for what they must include in their policies.
Legislation often dictates the benefits allowed and under what circumstances they can be paid out. It should also include the duration of payments and any additional requirements the employee must adhere to in order to receive compensation.
Purchasing the right workers' compensation insurance works to everyone's advantage. Not only will you maintain good relations with your employees, they will be able to rest and recuperate without the additional concern of income.
On the other hand, poor management of claims could lead to long-term work absences, which can be particularly damaging if you are already short staffed. You will also incur larger payments on your claims history, driving overall business costs up.
For more information on how to best manage your workers' compensation insurance or construction insurance in general, please contact Trades Insurance. Our tailored policies are designed to provide you with a comprehensive solution to managing risks for your business.