Under the Worker’s Compensation and Injury Management Act 1981, A workers compensation policy must be in place for anyone employed in your business who is defined as a worker (see link).
As you can see from this reference, – the definition of “worker” is EXTREMELY BROAD.
Surprisingly, in most cases, contractors and subcontractors may be defined as workers, depending on the working arrangements.
The only workers who can be excluded from coverage are the directors. All other employees however, including family members, must be covered under the policy.
WorkCover WA regularly conducts audits on businesses, ensuring they have a complying policy.
In the event they find you are not complying with the law, you will face hefty penalties with one (very) small business client recently fined $30,000.
Workers compensation insurance rates are approximately 2% of gross wages, however this varies industry to industry.
See the table here for the recommended rates in your industry.
Workers compensation coverage is usually an automatic process managed by your broker but the responsibility is yours and circumstantial changes can lead to oversights with very unwanted implications.
We can help with a review of your coverage and the structural arrangements and documentation you have with contractors.