Workers compensation insurance is an essential part of any tradies insurance cover. With the many different risks and injuries that workers can experience on site, getting the best possible insurance policies in place can ensure that your business is not liable for excessive costs.
While finding the right insurance is vital, there are some things that tradies need to consider in order to get the right policy for their needs. After all, workers compensation is mandatory for any company that has staff members on the books.
Here are three of the most important things that tradespeople need to account for when they take out workers compensation insurance.
Get the right level of cover at the beginning
Choosing the right workers compensation insurance will depend on a number of different factors. For example, contractors and subcontractors may not need to be covered if they have their own workers compensation or income protection insurance in place.
It is still up to you to make sure that these workers have enough insurance cover in the event that something does go wrong on your next project.
Your policy needs to change with your business
Once you have a policy in place you will need to keep on top of changes in your staff.
Taking on new employees or a number of apprentices may stretch your existing workers compensation, while pay rises also need to be factored into the protection that they enjoy. If workers compensation doesn't adjust with a pay rise, for example, then staff will be left with a much smaller percentage of their wages to cover their ongoing costs.
Keeping on top of these changes and ensuring that new employees are covered is essential for business owners.
Workers compensation doesn't cover everything
Like all insurance policies, there are some things that workers compensation won't cover. Travel to and from work is one area where your employees won't be covered in certain Australian states. Injuries that are sustained off-site but which stop a staff member from operating at peak efficiency will also need to be guarded against.
Fortunately, individuals can still take out income protection insurance which can protect against injuries that occur outside work hours or when you are not on site.
Understanding these exclusions can ensure that you get the right solution for your needs, no matter what challenges your employees face.