And One Of Your Employees Slipped And Broke Their Leg
The ambulance arrives. They’re taken to hospital. Surgery is required.
Now imagine there is no workers’ compensation system.
No insurer.
No statutory scheme.
No structured support.
Just you — the employer — facing medical bills, lost wages, and the very real possibility of a lawsuit.
Suddenly that single accident doesn’t just injure a worker.
It threatens the survival of your entire business.
Most Tasmanian business owners understand they are required to hold Workers Compensation Insurance Tasmania law requires it if they employ staff. But very few people stop to think about why the system exists in the first place.
At RSM Tasmania, we regularly help businesses understand their insurance responsibilities and the protection that workers’ compensation provides when things don’t go to plan.
A Workplace Accident
Let’s return to that situation for a moment.
An employee slips while carrying stock in a small retail business. They fall awkwardly and suffer a serious injury requiring surgery and months of rehabilitation.
It’s the sort of accident that unfortunately happens from time to time in many workplaces.
But in this imaginary situation, there is no workers’ compensation system.
Instead, the responsibility falls directly onto the employer.
The Costs Start Adding Up
Without a statutory scheme in place, the employer could be personally responsible for:
-
- Medical treatment
- Hospital expenses
- Rehabilitation costs
- Lost wages during recovery
- Potential compensation for long-term injury
Very quickly, the numbers become significant. For a small business, even one serious injury could represent tens or even hundreds of thousands of dollars in financial exposure.
And that’s before lawyers become involved.
The Legal Fallout
In a world without workers’ compensation, injured employees would often need to pursue compensation through the courts.
That means legal disputes, lengthy delays, uncertainty for both parties, and significant legal costs.
For many small businesses, a single serious injury claim could easily threaten the future of the business itself.
Why the System Exists
Workers’ compensation schemes were created to avoid exactly this situation.
Instead of relying on lawsuits, the system provides a structured framework that helps injured workers receive medical treatment, wage support and rehabilitation — while also protecting employers from catastrophic financial exposure.
WorkSafe Tasmania provides guidance on employer responsibilities and reporting workplace incidents.
Protection for Employers and Employees
A well-managed workers’ compensation policy isn’t simply about compliance with the law.
It provides reassurance for employees that support will be available if something goes wrong at work. At the same time, it gives business owners confidence that one unexpected incident is far less likely to become a financial disaster.
That balance is one of the key reasons the system continues to play such an important role in Australian workplaces.
Understanding Your Responsibilities
Every Tasmanian business that employs staff has specific obligations under the workers’ compensation scheme, including maintaining appropriate insurance and reporting workplace injuries when they occur.
If you’re unsure whether your current cover provides the right protection, it may be worth reviewing your policy.
The team at RSM Tasmania can help explain your obligations and ensure your business has the right protection in place.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at RSM Tasmania Insurance Brokers Hobart.
Talk to Roger Hosie and stay ahead with RSM Tasmania’s insights.
Call Now! (03) 6244 7854, or email .
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