WorkCover

Due to the Body Corporate and Community Management Act when Bodies Corporate think of required insurances most will only think of building insurance. SMG would also like schemes to think about WorkCover, this is because nothing is more important than one’s life and the ability to make a living.

All Bodies Corporate need to ensure that they have the necessary financial protection in place for the body corporate and others who work on the common property in case of injury. All schemes hire tradepersons and or Owners to complete repairs and maintenance to the common areas, this is why it is essential for all schemes to discuss and consider WorkCover.

WorkCover insurance was introduced in Queensland in 1997. WorkCover Queensland is government owned but self-funded. In Queensland it is a requirement that all employers hold a WorkCover Accident Insurance policy.

If you’re a contractor, a self-employed individual, a director of a company, a partner of a partnership, or a trustee of a trust, getting workplace personal injury insurance through WorkCover Queensland is essential. WorkCover provides protection in the event of an injury and being unable to work as a result.

Many Bodies Corporate don’t consider this type of insurance as necessary and this is due to in most cases WorkCover is arranged by the engaged service provider. However, what happens if an owner volunteers to do a common property repair job? Or a contractor without adequate insurance cover is appointed directly by the Body Corporate?

To avoid the possibility of inadequate cover, SMG now signs all schemes up to hold WorkCover insurance. To assist in understanding why SMG has made this decision we have provided some Frequently Asked Questions below-

What is WorkCover Queensland?

WorkCover Queensland is a self-funded government statutory body providing workers’ compensation insurance in Queensland since 1997.

Given WorkCover accident insurance is compulsory for employers, they try to maintain the lowest possible average premium rate to support employers and the lives of injured workers.

Why is WorkCover relevant for the body corporate?

WorkCover insures the body corporate against all statutory and damages claims in the event of a work-related injury for those who do work on behalf of the body corporate. 

When should a body corporate obtain WorkCover insurance?

• If your body corporate employs staff and pays wages to them
• An owner or tenant does odd jobs around the property and is paid for those odd jobs
• You have a caretaker or building manager paid as an employee
• The Body Corporate directly hires a handyman, gardener or tradespersons

What are the specific inclusions and exclusions I should consider?

In Queensland, the Workers’ Compensation and Rehabilitation Act 2003 (the Act) applies. The Act lists specific inclusions and exclusions for who should be covered for workers’ compensation.

Under Section 11 of the Act, a worker must be an individual who performs the work. Therefore, if the Body Corporate has engaged a company, they are not considered to be a worker.

Three criteria for the body Corporate to determine who is defined as “a worker”:

1. If they are paid to achieve a specified result or outcome
2. They provide the equipment and tools of a trade to perform the work
3. They are or would be, liable for cost of rectifying any defect of the work performed.

In addition, workplace personal injury insurance is for anyone deemed an “eligible person” under Section 23 of the Act.

An eligible person is an individual who, other than as a worker, receives remuneration or other benefit for performing work, providing services as a contractor, a self-employed individual, a director of a company, a partner of a partnership, or a trustee of a trust.

How does this differ from personal accident or voluntary workers insurance?

Many insurance policies include voluntary workers insurance. This is cover for owners or residents who may complete odd jobs around the complex, for example- removing rubbish from the common property. They would be performing the work without any renumeration.

How much is it likely to cost the body corporate?

The policy commences on 1 July each year.

The Body Corporates pays a premium provisionally, that is, the Body Corporate pays for your insurance at the beginning of a period, and adjust it at the end.

Almost all Bodies Corporate will pay a premium of around as little as $200.00 depending on the number of workers and the schemes claims history. The premium may vary from year to year.

This is a small price to pay when the schemes starts receiving legal invoices to establish the body corporate’s position in the face of a claim.

How does the Body Corporate apply for a WorkCover policy?

If your committee believes that the Body Corporate does not require WorkCover, Strata Management Group requires a resolution of a General Meeting to put this into effect.

SMG as your Body Corporate Manager will arrange for your annual WorkCover policy to be completed. Your Body Corporate does not need to diarise any dates and or complete any forms, our role is to assist the Owners when it comes to the required administration for your scheme.