BUSINESS INSURANCES

8.1 Insurance

Franchise partners are required to keep some business insurance policies to adequately cover their business in case of a loss.

Taking out insurance coverage is not only good business sense; it is a requirement under the Franchise Agreement.

The minimum insurance policies required are outlined in your franchise agreement and include:

  • Public Liability Insurance
  • Workers Compensation
  • Professional Indemnity (Kayla to check with insurance broker if needed)

8.2 Public Liability Insurance

Public Liability insurance is designed for professionals who interact with customers or members of the public. It helps protect against claims of personal injury or property damage that a third party suffers (or claims to have suffered) as a result of your business operations.

In real terms, this means that if someone slips and falls on your business premises, or their property is damaged while you’re providing a service, they may take legal action against you or your business to recover their loss.

Public liability insurance is designed to help protect your business depending on the policy you take out, covers incidents that occur in your workplace, as well as incidents at other locations.

Franchise partners are to be insured for Public liability to the value of $5 million.

8.3 Workers Compensation

Workers Compensation Insurance is a compulsory statutory form in insurance for all employers in every state and territory in Australia and provides protection to workers if they suffer a work-related injury or disease.

State government regulates the workers compensation scheme in each state.  Workplace incident/accidents are to be reported as soon as possible and can be reported 24 hours a day, seven days a week. Incident Notification Information Sheet

A notifiable incident is:

  • the death of a person
  • a serious injury of illness
  • a dangerous incident arising out of the conduct of a business or undertaking at a workplace.

The workers compensation scheme may provide the injured employee with weekly benefits, medical and hospital expenses and rehabilitation services.

The government body for Workers Compensation in each state is listed below.

WA
WorkCover WA Ph: 1300 794 744 www.workcover.wa.gov.au
NSW
WorkCover NSW Ph: 13 10 50 www.workcover.nsw.gov.au
QLD
WorkCover QLD Ph: 1300 362 128 www.worksafe.qld.gov.au
SA
SafeWork SA Ph: 1300 365 255 www.safework.sa.gov.au
VIC
WorkSafe Victoria Ph: 1800 136 089 www.worksafe.vic.gov.au
NT
NT Worksafe Ph: 1800 250 713 www.worksafe.nt.gov.au
TAS
WorkCover TAS Ph: 1300 366 322 www.workcover.tas.gov.au
ACT
WorkSafe ACT Ph: 02 6207 3000 www.worksafe.ac t.gov.au

The various Workers Compensation claims systems rely on paper, not memory.

Every time you contact or are contacted by your insurer or their agents, you should write down what was said – including phone calls, letters, emails, etc.

Usually, your insurer will be the best source of advice. As soon as you become aware of a claim, you should discuss the claim with your insurer. There may be reports they require, or rehabilitation to be organised.

The sooner you take action, the better.

The insurer will require you report any claim or event that might result in a claim to them. Incidents should be reported as soon as soon possible to avoid difficulties associated with reporting outside the specified timeframe.

8.4 Professional Indemnity Insurance

Professional indemnity insurance can cover compensation payments and legal fees if a business is sued by their client for a mistake they’ve made in their work.

The compensation payment will usually take into account the financial loss that the client has suffered.

Professional indemnity insurance can cover you for mistakes including professional negligence, unintentional breaches of confidentiality or copyright, and loss of documents or data.