August 15, 2016
Most people understand the benefits Worksafe insurance. It protects employees from loss of income, and medical expenses in the event of a work related illness or injury. And most know that this is required by law for all employers. This insurance is an important part of the due diligence we verify for our customers at Easy Job Quote.
The main aspect of this product is the “bar to sue” clause. With this insurance, employees go to Worksafe for coverage. They cannot sue their employer. This protection also applies to homeowners, if they have “employed” someone to work in their residence.
All employers and independent businesses require coverage, but the term “independent business” is not well understood. Independent business refers to someone who has more than one client, advertises, or works for you on an ongoing basis. In other words, anyone doing business.
Worksafe calculates premiums on payroll costs, not total job costs. They base the different premiums upon historical claim information industry to industry. So, higher risk businesses pay higher premiums. Renovations, for example, pay 6.1% premiums.
A business with a solid safety history earns discounts on their premium. So, a General Contractor with a good record of safety will pay less for their coverage. This is much like auto insurance safe driver discounts.
All companies usually build the insurance costs into their pricing. You, the consumer will always pay this cost, indirectly. This can mean you also benefit from any discounts. If your independent business “employee” has opted not to buy their own coverage, find out why not. You can then determine if it makes sense for you to obtain the coverage yourself. Or you can seek another businessperson with a different business model. Worksafe coverage, and a safety discount give a contractor a competitive edge.
Homeowners can apply for a clearance letter directly from Worksafe to verify a contractors good standing. Or you can purchase coverage for your “employee” to protect yourself with a residential policy. Any uninsured worker can sue you if injury occurs. The potential cost here is significant.
Worksafe coverage can apply to your nanny, gardener, house-cleaner, window-washer, or contractor. It applies to anyone who works for you in an ongoing capacity, or more than fifteen hours weekly. Have the conversation with your current or prospective worker about this important issue.
For those sole operators seeking employment in homes, consider the professionalism implied when you show up insured and ready to work.
Be safe out there!
Your Easy Job Quote Team.