Is workers compensation insurance enough?

Life Insurance -

Workers Compensation will cover you for some things, but have you also considered Income Protection to ensure you are covered when you need it most?

Whether you're a white-collar worker hammering away at your keyboard from 9 to 5, or a tradie getting your hands dirty day-in and day-out, you run the risk of getting sick or injured at work. For tradies in particular, there are four common risks that our Slice of Life article can help you avoid. 

That's why every Australian workplace has health and safety obligations: they must provide safe work premises, assess risk and have workers compensation insurance.


What workers compensation covers

As outlined on Fair Work Ombudsman, workers compensation may be paid out if you are injured at work, or if you become sick due to your work.

Payments could cover your wages while you can't work, your medical expenses, rehabilitation costs or a lump sum payment if you become permanently disabled or pass away.

It's also important to note that in order to receive workers compensation you must prove that your injury is work related. Your entitlements and eligibility for various payments may vary from state to state.


When workers compensation may not be enough
  • Other accidents

Australian Bureau of Statistics data shows that most injuries (27%) take place during leisure time.

However, workers compensation will only cover you for work-related injuries and illnesses.

What would happen if you broke your leg tripping over the dog at home? Or if you fell from the roof and sustained a head injury while removing a rogue tennis ball from the guttering?

If you're unable to work and not eligible to receive a workers' compensation payment, you could be without a wage to cover your family's regular food, accommodation and living expenses, not to mention the medical and rehabilitation costs that pile up.

  • Self employed

Workers compensation schemes may not cover you if you're self-employed, a sole trader or an independent contractor, as stated on the business.gov.au website. Always ensure you check whether you’re covered by a workers compensation scheme. If you are not covered and became sick or injured, would your savings be enough to support you and your family while you recover?

Not only will you have living expenses, but meeting ongoing business expenses such as payments to suppliers or commercial leases may become challenging.


Income Protection Insurance

Income Protection Insurance offers peace of mind and the cover you may need that could cover you for injuries and illnesses sustained both at and away from work.

TAL Income Protection Insurance could help take the financial pressure off your family while you're unable to work by providing monthly payments of up to 75% of your income (capped at $12,000 per month).

Cover can kick in if you're unable to work in any gainful occupation, or if you're left partially disabled and have suffered a reduction of 20% or more in your ability to generate a monthly income.

You can choose to include any of the following coverage options:

Accident Cover – For example, if you break your leg in a household accident or are injured at work.

Illness Cover – Includes heart attacks, stroke and Mental Health Related Illnesses.

Sports Cover – For example, if you tear your hamstring playing tennis.

For more information about choosing the right policy, see our Slice of Life blogs on comparing Income Protection Insurance, Income Protection Insurance for the self-employed, for winter sports players and for those on different wages.

You can also head over to TAL's Cover Builder and find an Income Protection Insurance policy that suits you and your family.


THE INFORMATION PROVIDED ON THIS WEBSITE IS GENERAL ADVICE ONLY AND DOES NOT TAKE INTO ACCOUNT YOUR INDIVIDUAL NEEDS, OBJECTIVES OR FINANCIAL SITUATION. YOU SHOULD READ THE RELEVANT PRODUCT DISCLOSURE STATEMENT (PDS) AND FINANCIAL SERVICES GUIDE (FSG) BEFORE MAKING A DECISION TO PURCHASE OR CONTINUE TO HOLD A PRODUCT. LIFE INSURANCE ISSUED BY TAL LIFE LIMITED ABN 70 050 109 450 AFSL 237848.


Back to top