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Your questions answered: Which type of insurance covers independent consultants?

By Portner Press on December 7th, 2018
  1. Employee Management
  2. Independent Contractors

 

Q
If you engage an independent consultant on a fixed-term contract, do you have to pay WorkCover, or is it covered by their professional indemnity insurance? We are in Victoria.

 

A
The Workplace Rehabilitation and Compensation Act (Vic) has an extended definition of ‘worker’ that can cover independent contractors.

If your consultant truly is an independent contractor, they will be a ‘deemed worker’ and covered by the WorkCover scheme if they provide 80% of their labour to you, and at least 80% of their gross income is derived from work done for you.

If they are a deemed worker, then you should have a workers’ compensation policy. In the event that an employee or deemed worker is injured, the workers’ compensation scheme is a no fault scheme and you don’t pay, your insurer does.

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