3. Workers Compensation or Accident Cover
Why should service providers consider Workers Compensation or Accident Cover?
Workers Compensation or Accident Cover is sensible, as it provides support in the event of an accident that prevents you from working (including under the NDIS). The types of insurance cover that must be considered include:
• Workers Compensation Insurance : If you own an incorporated business (i.e. Pty Ltd) you must purchase this insurance to cover the loss of wages (in the event of an accident) and certain payouts (in the event of the loss of use of an eye or limb, etc.)
Note: The requirements of this insurance differ depending on the state or territory that your business operates within. If you are the primary earner and don’t qualify for workers compensation, you may require personal accident cover.
• Personal Accident Cover : If you are a sole trader, you can purchase Personal Accident Cover instead of Workers Compensation Insurance. This cover provides an agreed payment under certain conditions if you are injured and is to cover expenses incurred till you are fit for work.
Dealing with an insurance specialist
Insurance documents are complicated; that’s why MyPROVIDERsearch recommends you use Envirosure, or another insurance specialist, who is familiar with contract law.
An insurance specialist can arrange insurance covers that best meet unexpected risk exposure while you, or your staff, are working under the NDIS. If your business provides services to customers other than NDIS participants, your insurance cover will need to be designed to meet your overall business needs and not just to cover your NDIS service activities.
Often an insurance premium is the key factor that guides your purchase decision. But be careful choosing purely on price, as not all policies are designed the same way. Some policies are sold with exclusions, which may mean you’re the one left trying to work out if the policy was right or not for you.
The expectations you should have when dealing with different types of insurance professionals are:
• An agent cannot provide advice concerning the performance of a policy.
• Insurance brokers: A broker will provide advice and insurance selection, but products may not always be recommended. If a policy is not ‘recommended’, the responsibility lies with you, not the provider. Sometimes a broker will sell a policy with disclaimers stating they only act as an Agent of the Insurer; this means they will not take responsibility if the insurance cover is inappropriate.
• Certified insurance professional (CIP): A CIP recommend insurance products that will provide you with a certainty of outcome. They have the responsibility of ensuring that an insurance cover they recommend protects your business AND meets NDIS requirements.
The insurance provider you work with must be familiar with the products they are recommending to you. Before purchasing any insurance cover, ask yourself:
• Does my insurance agent/broker/specialist clearly understand the products, services and types of claims that can occur in my sector?
• How experienced is my insurance specialist?
• Do they receive support from other organisations or associations in the sector?
If you’re not confident that an insurance provider can meet your needs, then always contact another specialist. It’s essential that the insurance protection you purchase meets the NDIS requirements and provides appropriate protection for your business.