Regardless of the type of work you do, there is always a possibility of falling sick or getting injured. That’s why every Australian workplace has a health and safety obligation to provide safe work premises, assess risk and have workers’ compensation insurance.
Workers’ compensation is a form of insurance payment paid to employees if they are injured at work or become sick due to their employment. Payments may cover:
The injury or illness must be work-related to receive workers’ compensation benefits.
If you’re self-employed, a sole trader or an independent contractor, you may need to arrange your own workers’ compensation cover.
A report released by Safe Work Australia in 2023[1] showed:
Whilst workers’ compensation offers some level of protection, it still only protects you for injuries or illnesses that occur at work or as a direct result of work – and then any claim made must meet eligibility requirements. In Australia, entitlements and eligibility for payments vary from state to state. If you suffer from an injury or illness that does not qualify for a workers’ compensation payment, there’s a real possibility that you could be left without income and with large medical bills.
While workers’ compensation is beneficial, it may not provide enough financial support for you and your family, even if you have a successful claim.
Considering that the vast majority of Australians suffer from injuries and illnesses not related to work, relying on workers’ compensation alone may leave you short on financial protection.
So, how can you ensure you still have an income when you can’t work?
Income Protection goes to work when you can’t and can cover you for well beyond what worker’s compensation may provide.
Although workers’ compensation might provide some coverage for injuries and illnesses sustained at work, including Income Protection in your personal protection plan can give you peace of mind, knowing that you’re covered in various situations, both at and outside of work. This way, your ability to earn an income will be secured.
If you want to explore your options for Income Protection, get in touch with your financial adviser today.
[1] https://www.safeworkaustralia.gov.au “Analysis of ABS Work-related injuries survey data, 2021-22”
The purpose of this website is to provide general information only and the contents of this website do not purport to provide personal financial advice. Financial Horizons (Cairns) Pty Ltd strongly recommends that investors consult a financial adviser prior to making any investment decision. The contents of this website does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making any financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular product, investment or security. The information provided on this website is given in good faith and is believed to be accurate at the time of compilation.