Master Builders members can seek assistance from the OHS Unit with any safety-related enquiries they may have.

Many members are not aware they can also obtain advice in relation to workers compensation matters as part of their membership.

I recently received a call from a member who was off work with a shoulder injury and was surviving on a weekly workers compensation payment of $350 per week. The member asked me if there was any way he could apply to his WorkCover agent to have his compensation payment increased to be more aligned to his actual weekly earnings, which were close to $1500 per week.

This member, a self-employed builder, took out a WorkCover insurance policy on the advice of his accountant who had recommended that he should declare a small remuneration figure to help ensure that if he injured himself, he would be able to make a successful claim against his own business. Unfortunately for the member concerned, his weekly compensation payments were calculated based on his gross taxable income and not on the earnings of his business.

The member lamented that he was still responsible for paying a site supervisor $1500 per week to continue managing his construction sites whilst he was off work, meaning that he was effectively $1200 behind for each week he was off work.

Though this member had at least some level of insurance cover to protect himself, it was far from being enough. More worrying still is the number of self-employed builders and tradesmen, particularly in housing, who have no life insurance, income protection or WorkCover insurance whatsoever.

Like builder’s warranty insurance, WorkCover insurance is a statutory insurance.  Employers are required to have a WorkCover insurance policy where they have an apprentice or if their annual remuneration (i.e. wage bill) exceeds $7500 per year.

Employers are required to cover independent contractors under their WorkCover insurance policy where a person is engaged to perform at least eighty per cent of their work for that employer and where that person depends upon that employer for eighty per cent of their income. The employer is required to include the labour component of the payments that they make to these subcontractors in their remuneration.

When providing OHS advice to employers, I will often ask them how many employees they have, only to be told “I just use subbies”. Builders and small business subcontractors will often have a small handful of workers who work for no one else and, as such, these employers are required to cover these ‘subbies’ under their WorkCover insurance policy.

Members who are self-employed are urged to seek advice from their insurance brokers so as to ensure they are adequately insured to protect themselves and their families.

Accountants may be good at advising on the best financial structures, and lawyers might be good with contracts, but they cannot always offer complete advice on everything.

Master Builders also recommends that members should consult with their subcontractors about this issue.

About two years ago, a carpenter was killed on a housing construction site. A newspaper article that described the tragedy reported that his widow had been left with just $5 in the bank. Her husband had no WorkCover insurance, life insurance or income protection.

Master Builders does not want to see anyone get hurt or suffer. We are committed to providing the best offerings and advice to help our members make their work sites safe, but we also do not want to see families having to survive without income after an incident.

For advice on WorkCover insurance obligations contact the OHS Unit on (03) 9411 4569.

For advice on insurance matters contact Master Builders Insurance Services on 1 800 150 888.