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  • #978737
    Anonymous
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    Hi all,

    Do we have any experts on worker’s comp insurance in the house please?

    A client of mine has asked me whether I have workers’ comp cover and has said that if I don’t she needs to increase the cover on her policy to pay for me.

    I don’t currently have cover as I’d been advised that as a sole trader it isn’t required.

    Now I’m concerned that perhaps I’ve misunderstood.

    If it’s relevant to your answer, the services that I supply to her are writing services, charged hourly. I do the work in my home office.

    Thanks in advance for your assistance. :)

    Jayne
    PS: Yes, I will check with WorkCover NSW, but the small business section of their website is conveniently offline at the moment.

    #1109159
    Peter – FS Administrator
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    Hi Jayne,
    Welcome to the forums! Thanks for getting involved :)
    This is not my area of expertise but I’m sure you’ll get some great advice soon.
    Your face looks very familiar :p
    Cheers,
    Peter

    #1109160
    Past-Member
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    Hi Jayne – is your client confusing you with being a contractor instead of a business invoicing her for services (PSI)? Or are you working on her premises? The ATO has info about determining the difference at
    http://www.ato.gov.au/businesses/content.aspx?doc=/content/00232435.htm&page=9&H9
    PSI
    http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/25193.htm&page=58&H58

    For solos providing services we need public and professional liability insurances. But Workers Comp is compulsory for those who employ people.

    The above is not legal advice – it’s just what I have been told and researched.

    #1109161
    Anonymous
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    FS Administrator, post: 121391 wrote:
    Hi Jayne,
    Welcome to the forums! Thanks for getting involved :)
    This is not my area of expertise but I’m sure you’ll get some great advice soon.
    Your face looks very familiar :p
    Cheers,
    Peter

    Haha, yes, I kind of recognise you too! ;)

    KarenC, post: 121393 wrote:
    Hi Jayne – is your client confusing you with being a contractor instead of a business invoicing her for services (PSI)? Or are you working on her premises? The ATO has info about determining the difference at
    http://www.ato.gov.au/businesses/content.aspx?doc=/content/00232435.htm&page=9&H9
    PSI
    http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/25193.htm&page=58&H58

    For solos providing services we need public and professional liability insurances. But Workers Comp is compulsory for those who employ people.

    The above is not legal advice – it’s just what I have been told and researched.

    Thanks Karen – as always. :)

    The client has phoned this morning to say that she was mistaken, and that sole traders don’t need to be covered.

    In my investigations I also found this info from Workcover NSW – just posting it here in case it helps anyone else: http://www.workcover.nsw.gov.au/insurancepremiums/Policies/doyouneedinsurance/Pages/Soletraderpartnership.aspx

    Phew. One less thing I have to sort out this week.

    Thanks again Karen.
    Jayne

    #1109162
    c2cemploymentrelations
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    Hello

    Just wanted to add to this query – firstly it would depend on the relevant State’s specific workers compensation legislation as to whether or not a sole trader would be required to be covered. The test is whether or not the Employee is a worker for Workers Compensation purposes in the relevant State.

    In Queensland for instance, if a Contractor (which can be a Sole Trader) is engaged for primarily labour only services they are usually deemed a worker for WC purposes and if they are setup as a Sole Trader or Partnership then actually yes the Company engaging their services may be liable to include them in their Workers Compensation calculations. Companies and Trading Trusts are not taken into account in these Workers Compensation calculations.

    Hope this clarifies,
    Brooklin

    #1109163
    Anonymous
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    Thanks Brooklin. I really appreciate you taking the time to clarify this. It does help my understanding very much.

    Thanks again,
    Jayne

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