When dumb Workers Compensation advice costs owner builders more than money

November 12, 2017 2:29 pm Published by 13 Comments

Workers compensation is unclaimable insurance for owner builders. Why do so many non-insurance professionals recommended it? Workers compensation sole purpose and benefit is to provide employees personal injury insurance cover when attending their place of employment or traveling to their place of employment. It does not provide any insurance cover to an employer. At the core, an owner builder is very, very unlikely to act as an employer and secondly is classified as an individual; building, constructing or renovating for their own use and benefit, and not for commercial gain. Subsequently not a company or commercial enterprise.

Recent public investigations regarding several big Australian financial services firms selling techniques and sales behaviour, highlighted long standing industry practices where upselling insurance products at every opportunity, is standard practice. These sales practices are based on old world, amateurish techniques to convey fear and uncertainty in the first instance, and then offer a potential buyer product(s) that in unlikely to deliver any quantifiable protection or tangible benefit.

Point of reference: Sole Traders are the most basic business structure and subsequently as businesses ‘by legal definition‘ remain responsible for all aspects of their business including insurances.They are not employees of an owner builder by definition, they are an independent contractor. When exaggerated claims such as Sole Traders are ‘different‘ and require owner builders to procure Worker Compensation, such comments are falsifiable arguments. Sole Traders are not employees. Nonetheless, good quality owner builder insurances will respond and protect against Sole Traders claims for injury. (Qtrust insurance policy is clear in this regard, and protects owner builders).

Owner builders face specific risks to their financial security and family stability when professional ‘ambulance chasers’ look to push or direct blame, or injury responsibility to unware or inexperienced owner builders. By any stretch of imagination or mind bending fantasy, workers compensation insurance won’t save an owner builder from potential legal proceedings or statutory responsibilities, when an onsite injury occurs. So what will?

In short, a comprehensive owner builder construction insurance which integrates legal and public liability is the optimum protection along with a stringent sub-contractor prerequisite assessments. The key differentiator of comprehensive insurance is defined principally by the quality, reputation and independent audit reviews of the actual insurer or underwriter making promises. Often a quick guide to these standards can be found in how they present or explain their cover, their exclusions or claims ratings. In our firm, we are quiet particular that our products are underwritten by Australian headquartered insurers, and that one insurer covers the entire risk, in other words remove any ambiguity of who precisely is underwriting and guarantying cover, and claims ratings history.

First class insurance cover is clear, concise and particular when it comes to onsite injury claims pertaining to contractors, sub-contractors or Sole Traders. Policy Wordings or Product Disclosure Statement should identify the risk and outline how it will be covered, always placing an owner builder at the forefront.

Personal circumstances plays a critically important role when discussing insurances and personal financial advice. Not all so-called advice is proper advice, too often it can be sales talk wrapped into cute sales phrases. When facts are real facts, and advice is just that, professional advice, best to seek out industry best, accredited and solid track record firms. Our firm’s reputation and success is built on these core tenants.

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This post was written by Technical Underwriting Centre

13 Comments

  • seth singh says:

    dumb a& dumber are working for your competitor. thanks4all

  • dale85 says:

    we bought our insurance from you because your hassan explained insurance clearly. goxxx

  • maurice says:

    we got the worker compensation talk from another broker. thanks for being honest and explaining everything so clearly.

  • kimberley says:

    awesome in pretty much everything you did for us

  • brankajur4 says:

    makes sense.

  • karalee alex says:

    makes sense when others try to confuse people like us to sell more insurance.

  • lyndaRsD says:

    just the information we needed. that has clear up the confusion.

  • muhammad.syd says:

    how would i rate your sales consultants?
    a comprehensive and concise approach to our needs. no fuse. effective and efficient service.

  • Aarav Singh melbourne says:

    A sole trader is the simplest form of business structure and is relatively easy and inexpensive to set up. But it still requires sole traders to be legally responsible for all aspects of their business, including insurance. If they are a business and sole traders are, then they cannot claim workers compensation insurance which is strictly for employees. but as an owner builder, you should protect yourself from third party legal or injury demands. Qtrust insurance policy does this more comprehensively than any other insurance we have seen. That’s why we chose them.

    • Jannet O'Mear says:

      Recently we completed our owner builder course and were left bemused by the instructors insistence that workers compensation insurance was essential. When we questioned the verosity of their claim, we soon discovered they had no basis for their comments nor had any qualifications to engage in such discuss. We were left in disbelief that today, unqualified people can make such claims and this is happening under RTO organisation.

  • Syeda86 says:

    When my course provider suggested workers compensation insurance, I responded ‘why so, as I was not indenting to employ other than subcontracting’. The response was staggering as he said, ‘I agree with you , but my boss makes commission each time insurance is sold, and I get a share! When I spoke to your company rep, I was so please to know someone out there is honest and doing the right thing. Thank you Louise, and thank your team. Good service.

  • david_f says:

    as a work safe and work place practices inspector , its up to all of us to make sure only qualified, licenced and insured subbies are used. the idea that they are employees when they are hired for a single element of my project and likely never to be used again on my home site, and then suggest they are employees of mine is rubbish, I agree with others, my course provider makes commissions when he can sell insurance. It appears like most do it, but are they qualified/licenced to sell insurance?

  • Technical Underwriting Centre says:

    as a work safe and work place practices inspector , its up to all of us to make sure only qualified, licenced and insured subbies are used. the idea that they are employees when they are hired for a single element of my project and likely never to used again on my home site and then suggest they are employees of mine is rubbish, I agree with others, my course provider makes commissions if he can sell insurance. It appears like most do it, but are qualified and licenced to sell insurance.

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