Question: Is a QLD body corporate required to have Workers Compensation insurance?
At a recent general meeting of our QLD body corporate, I queried an ongoing Workers Compensation insurance policy. Why do we have it and who is it for? We have no employees or volunteers. Our body corporate manager admitted they didn’t know why we required the Workers Compensation insurance policy. Why is this required? Is it in case a contractor doesn’t have insurance and we get sued?
Answer: Under the WHS Act, a body corporate which uses its common areas for residential purposes only and does not employ a worker under a contract of service is not regarded as a PCBU.
WorkCover Insurance is designed to cover employees defined by the Workers’ Compensation and Rehabilitation Act 2003.
In most cases, an employee works under an employment contract and receives PAYG wages.
Contractors that are not deemed employees do not fall under Workcover and the Strata Insurance would be the policy designed to provide cover for claims made by contractors for injury.
Please see the below applicable excerpt from the WorkSafe website.
Community title scheme body corporate (‘body corporate’)
Under the WHS Act, a body corporate which uses its common areas for residential purposes only and does not employ a worker under a contract of service is not regarded as a PCBU. Note, that, where a body corporate engages a person to do repairs (e.g. an electrical contractor), this does not make the body corporate a PCBU for the purposes of the WHS Act.
This post appears in the February 2023 edition of The QLD Strata Magazine.
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.