5 Questions to Ask Your Workers' Compensation Insurance Broker

Workers Compensation is a compulsory insurance which protects employees in the event of a workplace injury. When taking this cover for the first time, you may be confused about the type of cover you should take. 

1. Who does the policy cover? 

Workers Compensation insurance covers all classes of employees, including casuals, permanent employees, seasonal employees and working directors. The policy can also cover subcontractors working on behalf of the company.

 The business owner(s) and third parties are often exempt from the cover. 

2. How much are the premiums worth? 

Several factors will affect the Workers Compensation premium. They include: 

• The number of employees in your business
• The compensation of your employees
• The kind of work your employees perform
• The safety of your workplace

Keep in mind, you will typically pay a higher premium if your employees perform hazardous work such as construction and mining, and you will pay more if your workplace contains fire hazards or construction risks.

3. Can you reduce the premium? 

The insurer may assess your workplace before issuing cover. Since premiums are based on the risks your employees face at your workplace, you may be able to reduce the risks to decrease the premium. 

For example, your commercial building should have essential safety standards to reduce injuries in case of a fire outbreak, and your premises should be compliant with the building code. You should also eliminate other workplace hazards such as frayed wires, faulty elevators, slippery floors and malfunctioning appliances. 

If your employees operate machines at the workplace, train them on machine operation to decrease the possibility of accidents. Additionally, equip them with protective gear to minimise injuries in case of an accident. 

4. Do clients need to update cover? 

A wages declaration is sent out every 12 months at renewal to obtain updated wages from you.

You must inform your insurer or insurance broker as and when your business changes, particularly if your trade, service or occupation changes.

5. What happens when an employee suffers an injury at your workplace?

Your first concern as an employer, is to ensure that the injured employee sees a doctor or goes to a hospital in the shortest time possible. This will prevent them from furthering the injury or acquiring complications caused by non-treatment. 

Additionally, you should gather as much information as you can about the injury. For instance, when did the injury occur? What caused the injury? Can you tell the extent of the injury? Who responded to the injury? 

You will then use this information to file a claim with the insurer or insurance broker. Upon acceptance the insurer will reimburse the employer for replacement wages while the injured worker is unable to work, as well as reimbursement for all medical costs associated with the claim.

When arranging your Workers Compensation cover, you should speak with an insurance broker who is experienced with Workers Compensation policies. Your preferred insurance broker should offer quality service and have a fast and efficient claims handling process.

At Westralian Insurance, we understand Workers Compensation insurance. Contact us today to learn more about our services.