A recent court case involving an employer in Echuca has highlighted the potential consequences of not having WorkCover insurance in place when you need it. The employer in question was prosecuted and fined $20,000 following an accidental workplace injury of one of their workers, when it was found they were not registered for WorkCover insurance and failed to submit the worker’s claim within the required 10-day timeframe.

Knowing when you need to be registered for WorkCover insurance, and when you might be covered by someone else’s insurance, can be complicated, and changes to the rules can change frequently. Staying on top of your obligations is important, so finding out if you have the right coverage in place needs to become a regular part of the way we all work.

If you regularly work as a sub-contractor for another business, then, as far as WorkCover insurance is concerned, you might be a deemed worker of the employer to whom you contract for WorkCover purposes.

Likewise, if you use sub-contractors regularly and they’re working for themselves under an ABN, there’s a fair chance they will be viewed as working for you as far as WorkCover is concerned. This can be the case even if they are only working for you for a short time and they work regularly for other employers.

WorkSafe is planning to undertake a significant project in 2017 focussing on the insurance compliance of employers operating in residential construction. Before this happens, WorkSafe will be running a number of information sessions in 2016 to assist those who are unsure of their obligations and those who want to ensure they understand their obligations. These information sessions, planned for August and September 2016, will then be followed by a four-month moratorium from September through to the end of December this year. The moratorium will provide employers with the chance to update their WorkCover insurance details with their insurance agent, or to take out insurance if they realise they should be registered, without the fear of penalties being applied.

More information on the moratorium, the information sessions and the insurance compliance program can be found on the WorkSafe website over the coming weeks. If you are unsure of your insurance obligations, you can check them on the WorkSafe website www.worksafe.vic.gov.au/insurance or you can contact WorkSafe on 1800 136 089.