Workplace personal injury insurance is vital for some, especially if you're a contractor, director, partner, trustee or are self-employed. Essentially, anyone who isn't covered by regular workers' compensation should think about getting personal injury cover.
Having workplace personal injury insurance could help you out if an accident were to occur and you could no longer work.
This type of policy can offer:
It's a common mistake to assume that any injury sustained at work will be covered by workers' compensation insurance. Workers' compensation is a compulsory type of insurance that all companies take out for their staff, but it doesn't cover everyone. For example, directors, partners, trustees and sole traders won't receive any protection as standard.
As a result, some businesses also choose to take out workplace personal injury insurance. This optional cover can provide the same cover for those people who aren't classified as workers and therefore don't receive any protection as standard.
In addition to directors, partners, trustees and the self-employed, workplace personal injury insurance also covers contractors regardless of age or health status. Providing cover for things like weekly benefits, medical costs and rehabilitation expenses, this type of insurance offers crucial protection and peace of mind for a wide variety of workers.
While the cover available does differ between policies and providers, workplace personal injury insurance generally covers the following:
Anyone who's eligible to take out this cover can do so, regardless of their personal circumstances such as their health. Generally, you can apply if:
It's worth noting that a workplace personal injury insurance policy is different to income protection cover. While income protection policies provide cover 24 hours a day, workplace personal injury insurance only covers you for work-related injuries or illnesses. So if you suffer an injury or illness when not engaged in any work-related capacity, this type of policy will not offer you any protection.
In addition, costs associated with common law are not included in your cover as taking out this type of policy means you are effectively insuring against yourself.
There are several factors that can influence the cost of your workplace personal injury insurance premiums.
Another important area of workplace personal injury insurance that needs to be examined is the definition of workers and contractors. While an individual may be classed as a contractor for tax purposes, they may be deemed to be a worker for workers' compensation purposes. People who are commonly deemed as 'workers' for insurance purposes include:
Generally speaking, contractors are more likely to be hired to complete a specific project or task using their own skills than a worker. They're also more likely to employ others and receive payment based on the price they quote for a job.
Certain employers are exempt from taking out insurance for their workers. If you pay less than $7,500 in annual wages, you don't employ any apprentices or trainees and you are not a group member for premium purposes, you are exempt from taking out insurance.
However, such employers still need to provide assistance to help an employee manage their injury and eventually return to work. A $175 administration fee will be charged for any claim made against an exempt employer, with such claims assigned to insurance agents.
We briefly touched on the fact above that some people confuse the cover offered by income protection and workers' compensation policies. While these two policies are similar in a lot of ways, there are a few key differences that set them apart.
| WorkCover | Income protection insurance |
|---|---|
WorkCover provides protection when employees are injured at their place of work. When they suffer a serious injury that prevents them from returning to work for an extended period of time, they may be eligible to receive a range of workers' compensation benefits, such as:
Of course, in order to receive cover they will need to suffer the injury at work and also be able to prove the injury was caused by their employer's negligence. | Income protection insurance provides protection for illnesses and injuries 24 hours a day. When you consider that three-quarters of accidents in the home or while participating in recreational activities, the difference between the two types of cover becomes very important. In addition, while there are limitations on the types of injuries and illnesses workers' compensation covers, income protection provides ongoing income replacement benefits until you are able to go back to work or your benefit period ends. However, keep in mind that taking out income protection cover may affect any workers' compensation benefits This is to ensure that claimants aren't able to receive more money than they were originally earning while working. |
Although it's an optional form of insurance, workplace personal injury insurance can provide essential cover in circumstances where workers' compensation insurance falls short. If you'd like to take out a policy, compare your options before deciding on the best one for your business.
The brands that Finder work with do not offer specific cover for personal injury insurance. Two government sites where this type of cover can be found are Icare (New South Wales) and WorkSafe (Queensland).
Also, income protection insurance can be a great alternative that offers a comprehensive level of cover. It also covers you for illness and injury 24/7, not just while you're in the workplace.
Take a look at the providers below and see what percentage of your income you can expect to have covered and for how long. Click Get Quote to start comparing your options.
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