How to maintain your current workers' compensation insurance

Maintenance of your Workers' Compensation is not a choice for Australian employers; under occupational health and safety (OHS) and work health and safety (WHS) laws, it's a legal obligation...and one designed to protect both employees and your business from potential harm.

Accidents in the construction industry are common place — but while it's not always possible to eliminate injury in the workplace, there's a lot that we can do to mitigate and manage health and safety risks. Along with proper planning, training and preventative measures, having a current workers' compensation insurance policy (and most importantly, maintaining the right level of cover) is a key component of any workplace safety strategy. 

Why is workers’ compensation insurance required?

As an employer, you’re responsible for ensuring a safe work environment for the employees in your care. Specific workers' compensation regulations differ depending on the WHS/OHS laws applicable to your jurisdiction. However, the overall aim of this policy is to cover your workers in the event of a work-related accident, injury or illness. It will also protect your business against the cost of medical expenses or any associated support your injured worker may require if they lodge a claim — which, without the protection of insurance, could cause severe financial hardship.

Compensation insurance can cover costs such as medical treatment, ambulatory and hospital expenses; rehabilitation services; some personal items (if damaged to personal effects has occurred in a work-related accident), or lump sum payments (in extreme cases such as death or permanent injury).

Does workers’ compensation apply to my business?

For most employers, yes. There are, however, some exceptions to workers’ compensation requirements. Your business does not require an insurance policy if:

• you pay less than $7500 in annual wages;
• you do not employ apprentices or trainees; and
• you are not associated as a member of an insurance premium ‘group’.

It’s also essential that you understand the exact policy requirements that apply to your business — otherwise you risk running into trouble through underinsurance. This means that the wages of all employees must be fully declared, and that the policy has been taken out under the correct industry classification. Failure to comply with the correct insurance requirements can leave your business exposed to major penalties. It’s also possible that you could be paying too much insurance without even realising.

Maintaining a safe work environment and minimising risk

Those working in the construction industry are exposed to a higher degree of risk than other occupations, and as such, additional precautions — and specific insurance protocols ― must be taken in the workplace. While everyone has a responsibility to stay safe, it is the person conducting a business or undertaking (PCBU) who has a primary duty of care in managing workplace risks.

At a broad level, workplace safety can be secured by:

• ensuring all workers have undergone general and site-specific safety induction training, and hold the safety training qualifications or certificates relevant to their role (such as a white card);
• putting risk management strategies into place to protect against falls and slips, such as the use of safety stair tread nosing on steps and elevated platforms;
• preparing a waste disposal strategy for discarded construction materials;
• making appropriate arrangements for the storage of materials and construction equipment when not in use;
• erecting visible signage throughout the construction site to alert workers to hazards; and
• preparing a comprehensive work health and safety management plan (while this is only a regulatory requirement if the cost of the project is over $250,000, it is considered good practice for all construction activity).