IS WORKERS' COMPENSATION INSURANCE RELEVANT TO STRATA?

Yes, a strata company may be legally required to hold Workers’ Compensation insurance if it engages individuals who meet the definition of a ‘worker’ and may apply where the strata pays individuals such as contractors, caretakers, or onsite staff to carry out work on Common Property for example.

Definition of a ‘worker’: Under the Workers' Compensation Act 1981, a worker is someone employed under a contract of service or apprenticeship, or someone who is being remunerated for their labour or services. This can include full-time, part-time or casual employees, and contractors – visit workcover.wa.gov.au for more details.

Tradespeople and gardeners are often injured whilst carrying out paid work for strata owners, Workers Compensation cover is designed to respond to protect both the employer and the worker in these instances

What is Workers' Compensation Insurance?

Workers’ Compensation is insurance that covers the costs associated with work-related injuries or illnesses suffered by employees or certain contractors. It is regulated by WorkCover WA and provides financial protection for both the employer and the worker by covering medical expenses, rehabilitation costs, and lost wages if a worker is injured in the event of a work-related injury.

What happens if a worker is injured while working for the Strata?

 If a worker is injured while doing paid work for a strata, the strata’s Workers’ Compensation policy should cover the costs. Sole traders may have an optional Personal Accident policy, but if they do not and the strata is deemed the employer under WA law, the strata may be liable. Without Workers’ Compensation insurance, the strata could face significant financial exposure.

What does Workers' Compensation Insurance cost and how do I purchase it?

The cost can vary, but unless there is a full time building manager or a similar type employee that is engaged by the strata, the policy is often a minimum premium policy that costs around $400.00. This insurance can be purchased from a licensed insurer or through an insurance broker.