Did you know, just like Home or Car insurance, when one of your employees makes a workcover claim, as the employer, you are liable to pay an excess?
You can avoid the risk of paying the employer excess by selecting the excess buy-out option on your WorkCover Insurance premium.
The buy-out option is a feature you can add or remove from your policy and is available to all employers. Ordinarily, when your employee is injured at work and the worksafe claim has been accepted, you need to pay the first 10 days of weekly compensation payments and the first $824 (in 2023-24) of medical and related like expenses, this is your employer excess.
The buyout option removes the need for you to pay these excesses on claims lodged against you. WorkSafe will cover these costs from day one.
Depending on your business and the risk involved, the excess buy-out option could be a cost-effective alternative, however, it does increase your insurance premium by 10%
If you need more information, you can find it on the worksafe website here: https://www.worksafe.vic.gov.au/excess-buy-out-premium-payments
I recommend doing your own research and make an informed decision to work out if it makes financial and strategic sense based on your individual business and the risks involved in your workplace.
