f you have sustained an injury, either at work or elsewhere, that prevents you from doing your job, there are important cover options to keep in mind. While there are differences between workers’ compensation and income protection, and some of these payments could be made at the same time, the first step is understanding which type of coverage is right for you.
So how do these protections work?
You have a right to workers’ compensation from your employer if you are injured on the job or become sick because of something related to your duties.
While each state has their own set of laws around this issue, general workers’ compensation benefits can cover:
- Income replacement.
- Permanent impairment.
- Death benefits.
- Medical expenses.
However, this protection will only cover expenses or losses related to an injury that happened while at work.
Income protection insurance, however, can cover injuries that limit a person’s ability to work, but that may have occurred on the job OR outside of work. Only 25 per cent of injuries occur at work, according to Finder, so this additional insurance is important if a person has a serious injury or is diagnosed with a sickness that keeps them at home.
It’s also been shown that only 216,000 out of 700,000 people who have sustained injuries at work actually received workers compensation benefits, so this extra protection may benefit you more than just depending on that cover from your employer.
Funds received under income protection cover have no maximum payment benefit, unlike workers’ compensation, and these payments can continue until a person turns 65 in some cases (whereas work cover is limited to nine years or less).
While there have been cases when income protection insurance funds can be added on top of workers’ compensation, usually if payments are being made under income protection, that insurance overrules other insurance benefits, including work cover. This is done to ensure that a person is not receiving more money than they actually made at work before the injury or sickness occurred.
To learn more about your options if you have sustained an injury that is keeping you from working, get in touch with our experienced team of lawyers at Gerard Malouf & Partners Compensation, Medical Negligence & Will Dispute Lawyers. We can assist you with claims related to Permanent Disability (TPD), Income Protection Insurance, Accidental Death and Critical Illness.