Work Cover Insurance

When employing workers using Pay as You Go tax arrangements (PAYG), it is compulsory to have workers compensation coverage for all workers. A Household Workers Insurance Policy can be obtained from Workcover Queensland. This policy ensures that the employer is covered for accident insurance against injury sustained by the worker for the employer's legal liability for compensation and the employer's legal liability for damages.

A household worker is by definition "a person employed solely in and about, or in connection with, a private dwelling house or the grounds of the dwelling house".

"in and about" - work undertaken inside the residence and also on the premises generally e.g. in the yard.

"or in connection with" - work undertaken in connection with the contract of service and where the work activity is undertaken elsewhere e.g. where the worker accompanies the person to sporting activities, to the park, or shopping etc.

A Household Workers Insurance Policy also covers people who provide services paid for on a private basis when these services are not contracted from an on-hire agency. For example, cleaning, gardening or domestic duties.

For more information read Understanding your household workers' insurance policy or contact WorkCover Queensland on 1300 362 128. 

WorkCover would expect that you complete a regular Home Safety Checklist and record the training you provide to staff especially at the point of engagement. 

Public Liability Insurance

With the possibility of multiple people engaged using different payment options an additional safeguard would be to have public liability insurance at the property where the person in receipt of funds lives.  Negligence would have to be proved for a claim to occur here.  While the WorkCover policy protects the person in the situation where the injured person is a worker, public liability insurance protects the person or householder if someone who isn't working for the family is injured in the home (such as a friend or neighbour). 

If you own your own home, public liability can be included in your Home and Contents policy.  If you are renting, it is possible to take out public liability through a contents policy or check that the landlord has public liability insurance.

Vehicle insurance

If you allow workers to drive your car, you may need to inform your insurer that workers will be driving it and check for any age restrictions that may impact on your excess payment.

You may be able to nominate specific drivers to reduce your premium however you may have to pay higher excess costs if the driver who has an accident is not on the nominated list. 

It is recommended that you check with your insurer.