The Cost Implications of Not Having Workers’ Compensation Insurance
Many people don’t realise the full cost implications of not having workers’ compensation insurance. If you are found not to have workers’ compensation insurance you are firstly breaking the law. Secondly, your business will be held liable for the cost of the benefits paid if one of your workers has a work related injury (which in WA could be in excess of $600,000*), and all the additional the costs associated with a work-related injury:
- Legal costs involved in court action.
- Liability for the cost of any action taken at common law.
- Fees of up to $5,000 per worker.
- An amount equal to any avoided premiums going back 5 years.
- Separate and further offences for every week you remain uninsured after the date of conviction.
But my workplace is very safe
You may think your workplace is a very safe environment and the chance of a worker experiencing an injury is low. This may be the case, but this attitude will not stop you from breaking the law. Nor will it stop Workcover’s compliance officers from making regular workplace checks for current workers compensation policies.
What’s the chance of me being caught without Workers’ Compensation Insurance?
A total of 62 successful prosecutions were made last year against employers and employees in WA alone. So far this year there have been 13 successful prosecution cases which you can read if you visit: http://www.workcover.wa.gov.au/employers/costs-of-non-compliance/successful-prosecutions/
The successful prosecutions vary widely and range from a small carpentry business and a fruit & vegetable wholesaler, to an eco-tour business and a mine servicing business. The fines range from as little as $1,565.30 to as much as $63,452.00.
If you haven’t already got workers’ compensation insurance and you pay people to work in your business then you might want to ask yourself whether you can afford not to have workers’ compensation insurance?
Remember, a ‘worker’ can be a part-time, casual or full time person on a wage or salary or commission, a working director (optional), contractors and sub-contractors (in most cases) and family members.
If you’d like to get a workers’ compensation insurance quote, then feel free to give Leed Risk Services a call on 1300 881 464 or fill in our online workers’ compensation insurance quote form.