Insurance Brokers

Value of Insurance Brokers
The structure and protection provided by an effective insurance program are essential to business and community life.

Brokers are vital components of the business process. They advise business owners and managers on the best ways to “transfer” the inevitable risks they carry as part of doing business.

The role of the broker is to understand the business, identify all the risks, find the best available cover through a range of insurers, assisting the client in understanding options and represent the client's interests in any negotiation with insurers.

Brokers' services enable businesses to plan ahead with the certainty of knowing they have financial protection against loss, injury or any threat to the well-being of their business.

Brokers also provide invaluable help in the event of a claim. They know and understand the system and can simplify a process that is often time-consuming and technically difficult.

And brokers act in the interests of the client, not the insurer.

The broker's role to serve the client's interests with integrity at all times is enshrined in legislation (the Financial Services Reform Act 2004 and the Corporations Act 2001)
as well as the Insurance Brokers Code of Practice.

New Rules for Insurance Brokers

NEW RULES FOR INSURANCE BROKERS COME INTO EFFECT

Australian insurance brokers are now operating under a radically updated code of practice which is regarded as one of the best in the world.

The Updated Insurance Brokers Code of Practice, came into effect on January 1. It sets out clear principles and guidelines for brokers and affects dealings with both clients and underwriters. It also clearly sets out the responsibilities of brokers.

The new code was designed by NIBA in consultation with members and regulators. It covers all insurance intermediary services including commercial and life policy placement, associated services such as risk management, valuations and premium funding arrangements and issues like remuneration and service expectations.

What has not changed or been updated is the ongoing requirement for brokers to always act in the best interests of their clients.

The code is enforceable through the independent Insurance Brokers Disputes Limited and
Asic has also offered a ringing endorsement and has promised to support the code through its regulatory activities.

Please contact should you require a copy of the code.

Workers Compensation Facts, Figures, Questions

Workers Compensation Information, Facts, Figures, Questions

Workers’ compensation insurance
Workers Compensation protects you and your business from financial claims when a worker sustains a work related injury or disease. It also provides injured workers with payments to cover loss of earning capacity and reasonable medical and vocational rehabilitation expenses, and assists them to remain in or return to gainful employment. In some circumstances they may also receive specialised retraining or lump sum settlements. Workers are covered while they are working for your trade or business and/or acting under your instructions.

Wages
The term ‘wages’ includes all gross salaries, remuneration, commissions, bonuses, overtime,allowances and the like, directors’ fees and all other benefits (including piece workrates or otherwise, cash or in kind) paid to or in relation to a worker before deduction ofincome tax.

Definition of a worker
The primary definition of a ‘worker’ is very broad. It covers full-time workers on a wage or salary and also part-time, casual and seasonal workers, workers on commission and pieceworkers. Contractors and sub-contractors may also be defined as ’workers’, dependingon the circumstances of their working arrangement.

What about contractors and sub-contractors?
A contractor or sub-contractor may be defined as a ‘worker’ if the followingoccurs: 1. The contractor/sub-contractor is engaged by another person to dowork which is for the purpose of the other person’s trade or business.2. The contractor/sub-contractor is paid in substance for his/her personalmanual labour or services.

Should I cover working directors?
A working director means a director of the company who executes work for or onbehalf of the company, and whose earnings as a director of the company, by whatevermeans, are in substance for personal manual labour or services.It is optional for a working director’s company to cover their directors for workers’compensation.

Should I cover family members?
Where family members are employed by you (or contracted to you) and live in thefamily home, it is optional whether you cover them for workers’ compensation. Ifcover is required, family members must meet the definition of a ‘worker’ underthe Act and their name and the work they do needs to be disclosed on thepolicy, together with an estimation of their wages/salary.

Have an injury management system in place before an injury occurs
An injury management system describes the steps that an employer will take whena workplace injury occurs. It ensures that the employer is able to commence injurymanagement quickly and properly, so that injured workers can remain at work or returnto work at the earliest appropriate time.
The injury management system should be described in writing and you should makea copy of the document available to any of your workers who request it.Depending on the characteristics of the business and the resources available, a fairlysimple process will be sufficient in most cases. Be prepared and know whatto do.

Did You Know?
The major cost component of workers’ compensation claims is loss of wages.Reducing the time off work following an injury will save you money.You and/or your company may be liable if you do not provide safe working conditions for your employees.
You must have workers’ compensation insurance for all your employees.