Forgetting workers' compensation puts you more at risk than you realise

Last updated on November 14, 2023
As the owner of a small-medium sized business, does workers' compensation insurance sound like another thing to add to your to-do list? Something less urgent than more pressing day-to-day needs, like wages or invoices? Take care: delaying taking out workers' compensation cover exposes you to risks beyond the cost of potential litigation. Here’s why, and what you need to do.

Have you got workers' compensation insurance sorted for your business?

If you have, that’s great news. However, many Australian small-medium businesses push workers' compensation down the list of priorities. This decision doesn’t just expose these businesses to risk but can tarnish their reputation in the eyes of employees and stakeholders.

Here are three good reasons for getting moving with workers' compensation today and how to get started.

Workers' compensation sounds like it’s just for workers. But really, it’s in the interest of your business to be covered. This means being covered adequately for the number of people you employ and the types of roles they perform.

If an employee is injured at work, either physically or mentally, the business itself is potentially liable. Without workers' compensation insurance, the business is exposed to potential litigation, as well as legal fees, damages and associated costs. You may also have to cover weekly compensation, medical and hospital expenses for the employee. Not to mention, the reputational damage to the business that can result.

The good news is, it’s simple to arrange cover. You can get started right now by having a discussion with your insurance partner or get your quote online (selected states and territories).

In a tight labour market, your employer brand matters. Potential employees want to know your business will look after them and mandatory measures like workers' compensation insurance are a basic requirement.

Recruitment is a two-way process and showing that your business cares about it's workers is crucial if you want to secure the best candidates. Workers' compensation is one essential part of this.

‘’If you’re setting up a new business and bringing in employees, make sure your workers' compensation insurance is in place before their first day on the job. Even with the most stringent of health and safety protocols in place, accidents can still happen anytime, anywhere,’’ explains Mark Sutton, Head of Partnerships and Distribution, Workers' Compensation, Allianz Australia.

Mark Sutton,
Head of Partnerships and Distribution

It’s important to know that if your business doesn’t have an adequate workers' compensation policy, or any at all, you can be issued with an infringement notice by the relevant regulatory body.

Depending on the process, which varies from state to state, this can lead to a fine or even criminal prosecution.

On the bright side, workers' compensation cover is easy to arrange. Reach out to your insurance partner or get your quote online today (selected states and territories).

Finally, when it comes to workers' compensation Mark’s advice to any business owner is to arm yourself with knowledge so you can be ready for any eventuality. ‘’With the intricacies of workers' compensation differing across each jurisdiction it’s a good idea to be familiar with the requirements for the jurisdiction you operate in, as well as understand what’s expected of you should one of your employees suffer an injury.’’

It’s easy to get started. Build up your understanding of workers' compensation by visiting Allianz Personal Injury National Training. You’ll find live training sessions and webinar recordings that cover a range of topics from workers' compensations fundamentals, the return-to-work process for injured workers, workplace OHS management and mental health and wellbeing.1

1. Free for Allianz customers and partners, fees may apply for those who aren’t.

This article has been prepared by Allianz Australia Insurance Limited ABN 15 000 122 850 AFSL234708 ("Allianz"). In some cases, information has been provided to us by third parties and while that information is believed to be accurate and reliable, its accuracy is not guaranteed in any way.

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