Insurance/Workers Compensation

A message from HEM

After the Coronavirus stage 2 shutdown which took effect from Monday, your hotel’s wages will be significantly reduced; subject to your decision to continue to pay some employees or operate bottle shops, take away food or accommodation.

If a member (whose workers compensation insurance is with HEM) has any outstanding instalments due for their current workers compensation premiums due for policies ending on the 30th June 2020 or 31st December 2020 you are able to re estimate your anticipated wages for the year ending on either of those dates. Please call Jay Mitchell on (02) 4032 2455 to advise your reduced wages or to obtain a Declaration.

The reduced wages may extinguish any liability currently due, however if a debt is still outstanding and you need assistance please contact HEM on the above number.

Effect of JobKeeper Wage Subsidy on workers with Workers Compensation claims

As present, there is no information specified by the government regarding payment to those workers on workers compensation however Hospitality Employers Mutual anticipates applying the following criteria subject to confirmation by SIRA (and any further criteria assessed by the ATO in the eligibility process);

  • For injured workers with claims who may have been working and earning on suitable duties as at 1 March 2020, our position is that the JobKeeper payments can replace the Worker’s Earnings (“E”) component in the weekly payment formula. It is likely that this will be backdated as far back as 1 March 2020, however commencement will likely align with when the employee was stood down from the duties and would continue for the stand-down period (up to 6 months).
  • Workers currently with no current capacity to work could also be re-engaged (if terminated), and Job-Keeper payments claimed / commenced when the worker is upgraded with a capacity to RTW.
  • These JobKeeper payments will not be included as part of the cost of the claim for the purpose of determining a premium.
  • As noted above, stood down employees are eligible and employees terminated since 1 March 2020 will need to be re-engaged to be eligible.

We are applying these principles to benefit both the worker and the employer as we strongly support the retention of injured workers in employment for the long term benefit to all parties once this crisis is past.

Effect on Workers Compensation Premium calculation

We do not anticipate including the JobKeeper payment as part of declarable wages for the purpose of premium calculation for those not performing their normal duties.

For employees continuing to perform their duties, the JobKeeper component should be included in the wages declared for the purpose of premium calculation.

Practical Application of these principles

We will be progressively contacting employers that have workers on workers compensation to explain further details however you will appreciate that this is a fluid situation and there may be delays and changes as SIRA may ultimately require a different approach. In the meantime if you have any questions please contact either your account manager or info@hotelemployersmutual.com.au

A message from Steadfast IRS

Loss of income cover

The underwriters who provide insurance to the Hospitality Industry that we work with do not cover loss of income due to quarantinable disease, pandemic & epidemic, as the policy holder you are always welcomed to lodge a claim and your broker will be able to manage this for you.

It is important we note the Industrial Special Risks Insurance is to cover the building, damage caused to the building and loss of income as a result of property damage.

What’s next and what do I do with my insurance?

We have had multiple enquiries requesting to cancel policies or reduce sums insureds. We want to stress the importance of not reducing your sums insureds, or cancelling your policy.

Cover remains in place for damage to the property caused by Storm, Fire, Malicious Damage and Theft under your ISR insurance.

Network Steadfast are working with multiple insurers and gathering options on what premium relief may be available. As we become aware of viable options we will contact our clients to provide these details.

If you have any queries we recommend the best course of action is to contact your broker.

John Kay

m 0455 400 224
e jkay@steadfast-irs.com.au

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