Personal Injury Insurance

You'll want to consider workplace personal injury insurance if you aren't covered by workers' compensation.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Workplace personal injury insurance is vital for some, especially if you're a contractor, director, partner, trustee or are self-employed. Essentially, anyone who isn't covered by regular workers' compensation should think about getting personal injury cover.

Having workplace personal injury insurance could help you out if an accident were to occur and you could no longer work.

This type of policy can offer:

  • Compensation benefits.
  • Medical expense payments, including any hospital bills and rehabilitation.
  • Personal items damaged in a work-related accident.
  • Lump sum pay outs for death or permanent impairment.

Do I need workplace personal injury insurance?

It's a common mistake to assume that any injury sustained at work will be covered by workers' compensation insurance. Workers' compensation is a compulsory type of insurance that all companies take out for their staff, but it doesn't cover everyone. For example, directors, partners, trustees and sole traders won't receive any protection as standard.

As a result, some businesses also choose to take out workplace personal injury insurance. This optional cover can provide the same cover for those people who aren't classified as workers and therefore don't receive any protection as standard.

In addition to directors, partners, trustees and the self-employed, workplace personal injury insurance also covers contractors regardless of age or health status. Providing cover for things like weekly benefits, medical costs and rehabilitation expenses, this type of insurance offers crucial protection and peace of mind for a wide variety of workers.

What does workplace personal injury insurance include?

While the cover available does differ between policies and providers, workplace personal injury insurance generally covers the following:

  • Weekly benefits. If you suffer a work-related injury and are unable to return to work, the resulting loss of income can place you under a huge financial strain. Workplace personal injury insurance provides weekly benefit payments to replace your loss of income when you are totally or partially disabled for a temporary period. Many policies will pay out up to 85% of your regular income in benefits.
  • Accidental death. This type of insurance will offer a lump sum benefit payment in the event of accidental death.
  • Permanent disability. If a workplace injury leaves you with a permanent disability, your policy may provide a lump sum benefit to help you cope with your changed circumstances and any resulting loss of income.
  • Rehabilitation expenses. If you're injured and unable to return to work for more than a certain period, any necessary rehabilitation costs will be covered by your policy.

Who can get this type of cover?

Anyone who's eligible to take out this cover can do so, regardless of their personal circumstances such as their health. Generally, you can apply if:

What isn't covered by workplace personal injury insurance?

It's worth noting that a workplace personal injury insurance policy is different to income protection cover. While income protection policies provide cover 24 hours a day, workplace personal injury insurance only covers you for work-related injuries or illnesses. So if you suffer an injury or illness when not engaged in any work-related capacity, this type of policy will not offer you any protection.

In addition, costs associated with common law are not included in your cover as taking out this type of policy means you are effectively insuring against yourself.

How much does workplace personal injury insurance cost?

There are several factors that can influence the cost of your workplace personal injury insurance premiums.

  • The cost of your cover is determined by multiplying your wages by a premium rate, which is in turn based on your occupation.
  • This rate is heavily influenced by whether your occupation is classed as manual labour - including things like lifting, carrying, pulling, pushing and other physically rigorous duties - or office, admin or clerical work.
  • Your wages, also sometimes referred to as your Insured Benefit Level (IBL), are the amount of income you declare to the ATO. They are used to determine your premium and also affect your weekly benefit amount should you make a claim.

What's the difference between a worker and contractor?

Another important area of workplace personal injury insurance that needs to be examined is the definition of workers and contractors. While an individual may be classed as a contractor for tax purposes, they may be deemed to be a worker for workers' compensation purposes. People who are commonly deemed as 'workers' for insurance purposes include:

  • Outworkers
  • Contractors under labour hire service arrangements
  • Salespersons and canvassers
  • Collectors
  • Rural workers
  • Boxers, referees and entertainers.

Generally speaking, contractors are more likely to be hired to complete a specific project or task using their own skills than a worker. They're also more likely to employ others and receive payment based on the price they quote for a job.

Who is exempt?

Certain employers are exempt from taking out insurance for their workers. If you pay less than $7,500 in annual wages, you don't employ any apprentices or trainees and you are not a group member for premium purposes, you are exempt from taking out insurance.

However, such employers still need to provide assistance to help an employee manage their injury and eventually return to work. A $175 administration fee will be charged for any claim made against an exempt employer, with such claims assigned to insurance agents.

Income protection vs Workers' compensation

We briefly touched on the fact above that some people confuse the cover offered by income protection and workers' compensation policies. While these two policies are similar in a lot of ways, there are a few key differences that set them apart.

WorkCoverIncome protection insurance
WorkCover provides protection when employees are injured at their place of work. When they suffer a serious injury that prevents them from returning to work for an extended period of time, they may be eligible to receive a range of workers' compensation benefits, such as:
  • income replacement
  • medical and rehab benefits
  • permanent disability benefits
  • death benefits.

Of course, in order to receive cover they will need to suffer the injury at work and also be able to prove the injury was caused by their employer's negligence.

Income protection insurance provides protection for illnesses and injuries 24 hours a day. When you consider that three-quarters of accidents in the home or while participating in recreational activities, the difference between the two types of cover becomes very important.

In addition, while there are limitations on the types of injuries and illnesses workers' compensation covers, income protection provides ongoing income replacement benefits until you are able to go back to work or your benefit period ends.

However, keep in mind that taking out income protection cover may affect any workers' compensation benefits This is to ensure that claimants aren't able to receive more money than they were originally earning while working.

Although it's an optional form of insurance, workplace personal injury insurance can provide essential cover in circumstances where workers' compensation insurance falls short. If you'd like to take out a policy, compare your options before deciding on the best one for your business.

How to find personal injury insurance


The brands that Finder work with do not offer specific cover for personal injury insurance. Two government sites where this type of cover can be found are Icare (New South Wales) and WorkSafe (Queensland).

Also, income protection insurance can be a great alternative that offers a comprehensive level of cover. It also covers you for illness and injury 24/7, not just while you're in the workplace.

Take a look at the providers below and see what percentage of your income you can expect to have covered and for how long. Click Get Quote to start comparing your options.

Name Product Maximum Monthly Benefit Maximum % of Income Covered Maximum Benefit Period Waiting Period Options
AAMI Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
If you’re an existing AAMI customer, you can save 5% on income protection. New customers can get one month free by paying annually.
Insuranceline Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
Get a $100 bonus gift after 2 months. Plus, and get 12 months cover for the price of 11 if you pay annually. T&Cs apply.
NobleOak Income Protection
$25,000
75%
Up to 65
30 or 90 days
With NobleOak, you can lock in a policy with a benefit period covering you up to the age of 65. Cover limits may go as high as $25,000.
Suncorp Income Protection
$10,000
75%
Up to
5 years
14, 28, 60 or 90 days
Sign up and become a member of Suncorp Benefits. Access savings of up to 15% from major retailers. Existing members can get a 5% discount off their policy.
Medibank Standard Income Protection
$7,500
75%
Up to
5 years
30 or 90 days
If you’re a Medibank health member, you can enjoy a 10% discount on your premiums each year.
Commbank Income Protection by AIA Australia
$10,000
75%
Up to
2 years
30, 90 days
Apply by 23 June 2021 and get 20% off your first year of income protection premiums. T&Cs apply.
RAC Income Protection
RAC Income Protection
$10,000
75%
Up to
2 years
30 or 90 days
You can get cover of up to 75% of your income, to a limit of $10,000 per month, with RAC.
RACQ Income Protection
RACQ Income Protection
$10,000
75%
Up to
2 years
30 or 90 days
Buy your income protection online and save 25% on your first year’s premium. This offer ends after 22 June 2021.
Bendigo MaxLife Income Protect
Bendigo MaxLife Income Protect
$10,000
75%
Up to
2 years
30 or 90 days
Take advantage of a 5% joint policy discount with Bendigo. Also, you can unlock policy savings through the wellbeing programme AIA Vitality.
loading

Compare up to 4 providers

Enter your details and one of our partner brokers will call you. They will discuss your quote, options and available products.

Sex
Do you smoke?

An adviser can help you find cover from trusted life insurance brands.

  • Get competitive quotes from multiple brands
  • Lower rate of declined claims (according to ASIC)
  • Save time and effort

Lender Logos

More guides on Finder

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

2 Responses

    Default Gravatar
    sidraJune 28, 2017

    Hi there. How much is the workplace personal injury insurance as unpaid medical observer for one month period only?
    Regards
    Sidra

      Default Gravatar
      DanielleJune 29, 2017

      Hi Sidra,

      Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.

      There are several factors that can influence the cost of your workplace personal injury insurance premiums.

      -The cost of your cover is determined by multiplying your wages by a premium rate, which is in turn based on your occupation.

      -This rate is heavily influenced by whether your occupation is classed as manual labour – including things like lifting, carrying, pulling, pushing and other physically rigorous duties – or office, admin or clerical work.

      -Your wages, also sometimes referred to as your Insured Benefit Level (IBL), are the amount of income you declare to the ATO. They are used to determine your premium and also affect your weekly benefit amount should you make a claim.

      You may also check with your insurance company for additional information. I hope this helps.

      Cheers,
      Danielle

Go to site