Who needs a workers compensation policy?
Under the Workers Rehabilitation and Compensation Act 1988 (The Act) all employers are required to take out a policy to cover all employees including the following:
- Contractors where the work is not work incidental to their trade or business
- Family members who are employed and or engaged in the business
- Working directors.
For further information, see the WorkCover TAS website.
Who is covered by a policy?
All employees are covered by a workers compensation policy and are entitled to compensation for any injury arising out of the course of their employment or an injury that is a disease where their employment is deemed to be a significant contributing factor.
If you are a sole proprietor or a member of a partnership, you are not an employee of your own business and therefore you cannot take out a Workers Compensation policy that will cover yourself.
Obtaining a policy
When taking out a policy, you will need to submit a proposal form declaring estimated wages for the period of the policy (usually twelve months) and pay the deposit premium based on the estimate. The premium is adjusted at the end of the period based on actual wages paid during the period. For further information see the employer information pack and employer indemnity policy.
Premium rates are reviewed by CGU annually with rates set for each industry/occupation.
CGU calculates premiums in two stages. First, the appropriate industry rate is applied to the estimated gross wages declared by you.
Second, the resulting premium may be adjusted in accordance with your past claim experience and any additional risk factors including your commitment to OH&S, commitment to alternate duties and business size.
What happens if I am uninsured?
If one of your employees has a work-related injury or industrial disease and you are uninsured, you will be liable for the cost of that claim. You may also be liable for the cost of any damages awarded by a court. In addition, WorkCover TAS may prosecute any uninsured employer, with fines payable of up to 500 penalty points. For further information see the WorkCover TAS website.
Under the terms of the policy we issue, you have certain policy and claims responsibilities to fulfil. It is important that you take the time to read your policy document so that you are aware of these obligations.
The major obligations you have are to:
- Provide estimated and actual wages declarations for each policy period you are insured with us
- Maintain proper wages records for every employee
- Allow inspection of your wages records by a duly authorised representative appointed by us
- Notify us if your workplace or activities change (as this may change or alter your workplace classification and premium)
- Give notice of any injury as soon as practicable.
As an employer, you also have obligations when one of your employees is injured at work. For further information, see the claims section for employers.
Managing your policy effectively for large businesses
As a large business, your company structure may mean that you have complex needs when it comes to managing your workers compensation policy.
We will work with you and your advisor to understand your business structure and strategy and help make the management of your portfolio of policies as effective and efficient as possible.
There are several things you need to know regarding your Workers Compensation insurance. You can access an Information Pack for Employers by clicking on ‘Forms and downloads' in the Tools and Resources section of our website and then selecting 'Information Pack for Employers'.
The pack contains information regarding your obligations, entitlements and procedures required by the Workers Compensation legislation in lodging and processing claims. It is important that you are fully aware of these requirements so that claims are efficiently managed and the interests of both you and your employee are protected.
The Forms and downloads webpage also contains other important information, such as:
- The Workers Compensation Handbook: The Basics (BG010 WorkCover document)
- Details of our Injury Management Program and our Injury Management Services
- Any recent changes to Workers Compensation Laws
- Sample policy documents and related forms
- Sample claim-related reporting forms and process information.
Do you employ more than 50 employees?
Did you know that if you employ over 50 employees you must maintain a list of alternate duties available?
Details on alternate duties available within your business must be provided to CGU within 60 days after the commencement of your policy and on each renewal period. A copy of alternate duties created by WorkCover can be found on our website by clicking on ‘Forms and downloads’ and then selecting ‘Register of Alternate Duties TAS’.