Reviewing your Return to Work Programs

As we enter into the festive season many businesses are starting to wind down operations and deservedly so after another busy year. However, Saunders Safety & Training have received a record number of enquiries pertaining to Return to Work Programs and just like the summer weather, things are heating up!

A Return-to-Work Program is a NSW specific Policy setting out an organisations commitment to supporting a staff member through their recovery from injury or illness resulting from a workplace incident. It needs to clearly set out who within an organisation is delegated authority to support your people, how those people are equally supported by other internal and external stakeholders, and how sensitive information is stored and used in the future prevention and management of workplace injury.

Most employers are legally required under the various pieces of Legislation & Guidelines to hold a compliant Return to Work Program, show evidence of consultation with the workforce (and potentially the industry union), and update the program at least every two years.

The increasing number of enquiries coming through Saunders Safety & Training for assistance in this space is reactive to audits and inspections undertaken by the State Insurance Regulatory Authority (SIRA) and unfortunately many of these enquiries are coming with Performance Improvement Notices (PIN) and financial penalties to the company.

As we head into the holiday season, it is a timely reminder safety in the workplace never stops and nor does the attention of the safety regulator. We strongly encourage all employers to review their policies and where needed and reach out to Saunders Safety & Training on (02) 9958 9009. We have the capability to deliver these policies and education to prevent financial and reputations damage to the organisation.

Safeguarding employees financial wellbeing, even when they are not at work

Safeguarding employees financial well being, even when they are not at work

For employers, ensuring the financial stability of your employees is paramount, especially when unexpected circumstances, such as injuries or illnesses, arise. While workers’ compensation is a must have, 75% of Australians who were injured suffered the injury outside of work1. This highlights the importance of addressing broader health challenges that can impact your team.

Causes of injury;

 

Additionally, over 2.6 million Australians aged under 65 are living with physical disabilities2, including conditions like cancer, stroke, heart disease and depression, that in many cases will not be covered by Workers’ Compensation. So, how can individuals manage their living expenses if they’re injured outside of work or fall ill beyond their leave entitlements?

While the Australian Government provide a disability support pension, this is often a fraction of what employment earnings were and may reduce or not be eligible due to assets or income tests. 

Businesses have a unique opportunity to support their employees by establishing a Group Salary Continuance (income protection) plan, which can replace up to 75% of an employee’s income if they are unable to work due to sickness, accident, or injury—potentially for the entirety of their working lives if needed.

Benefits for employees:

  • Income Security: Cover living expenses and mortgage payments during illness or injury when leave is exhausted.
  • Long-term Support: Monthly payments can potentially continue up to age 65 if the employee cannot return to work.
  • Flexibility: Partial payments can apply if an employee is able to return to work on restricted hours.
  • Multiple Claims: Ability to claim on the policy multiple times for the same or different issues.
  • Inclusive Coverage: Provides cover that individuals may not obtain individually due to existing health conditions.

 

Benefits for Businesses:

  • Community Values: Demonstrate a commitment to community and family by supporting employees during challenging times.
  • Employer of Choice: Gain a competitive edge in attracting and retaining top talent.
  • Cost-Effective: Group policies are often more affordable than individual policies, providing significant cost savings for both the employee and the business, which generally is cheaper then the equivalent pay increase.
  • Automatic Acceptance: Ensure access to coverage for those with family or medical history challenges, offering them protection they might not find elsewhere.

 

This is specialist cover through our partnership with Tempus Wealth, offering expertise and support for both your business and employees.  Please don’t hesitate to contact us on (02) 9587 3500 or emailing theteam@wsib.com.au to explore how Group Salary Continuance can benefit your team.

  1. AIHW (2008) Australia’s Health 2008, Cat. no. AUS 99, Canberra
  2. http://www.abs.gov.au/ausstats/abs@.nsf/mf/4825.0.55.001/ accessed on 30 August 2012.

 

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Fires caused by lithium batteries are on the rise.

In recent years, there has been a concerning increase in fires caused by lithium batteries. These incidents not only pose a danger to lives and businesses but also highlight the need for greater awareness and precautions when it comes to these common power sources. 

Causes of Lithium Battery Fires

  • Overcharging and Overheating: Overcharging a lithium battery can lead to thermal runaway, causing the battery to heat up uncontrollably and potentially ignite.
  • Physical Damage: Even minor damage to a lithium battery, like punctures or crushing, can compromise the battery’s integrity and increase the risk of a fire.
  • Manufacturing Defects: Faulty manufacturing can result in defective lithium batteries that are more prone to overheating and fires.
  • Poor Quality Chargers and Cables: Using subpar charging equipment can lead to overcharging and overheating of lithium batteries.

Minimising Risks

  • Use Genuine Chargers and Cables: Always use chargers and cables provided by the device manufacturer or reputable third-party accessories to ensure compatibility and safety.
  • Avoid Overcharging: Unplug devices once they are fully charged to prevent overcharging. Many modern devices have built-in mechanisms to prevent overcharging, but it’s still a good practice to unplug them when not in use.
  • Handle with Care: Protect lithium batteries from physical damage. Avoid dropping, puncturing, or subjecting them to excessive pressure.
  • Store Safely: Store spare lithium batteries in a cool, dry place away from direct sunlight and flammable materials. Avoid storing them at extreme temperatures.
  • Stay Informed: Keep an eye on product recalls and safety advisories related to lithium batteries. Manufacturers may issue recalls for potentially hazardous batteries.
  • Educate Yourself: Familiarize yourself with the signs of a potentially problematic lithium battery, such as excessive heat, swelling, or unusual odors. If you notice any of these signs, stop using the device and seek professional help.

The rise in fires caused by lithium batteries is a growing concern in our increasingly digital and mobile world. However, by taking simple precautions and staying informed about the potential risks, businesses can significantly reduce the likelihood of a lithium battery-related fire. It is essential for business owners and employees to prioritise safety and work together to minimise these risks in our workplaces.

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Are you managing your asbestos risk in accordance with current legislation?

For a long time, there has been much attention placed on the very dangerous and ill affects Asbestos exposure can have on an individual. What we know is that Asbestos was very heavily used in building construction between the 1940’s to 1990’s primarily due to its high levels of heat resistance. Unfortunately, it wasn’t until much later when we identified that those Asbestos fibres can become trapped within the human respiratory system, leading to an increased risk of cancer, especially Mesothelioma which is defined as: cancer within the lining of the lung.

As a result of the increased awareness and research around the effects of Asbestos on the individual; legislation now exists to maximise safety of workers within a workplace. The Work Health & Safety Act (2011) and the Work Health & Safety Regulation (2017) talks extensively to the need for a “person with management or control of a workplace” to develop, maintain and update an Asbestos Register. This is also a legal requirement, should that building have been constructed prior to 01 January 2004. There are significant financial and reputational risks associated should this legal requirement not be met, including prohibition and prosecution notices from the state or territory SafeWork Regulator. The only way to be certain as to whether any material contains Asbestos (and specifically what type) is to have the material tested in a laboratory. These tests should be completed by an accredited facility (known as a National Association of Testing Authority (NATA) facility).

Saunders Safety & Training can assist with the development or review of any Asbestos Register and its subsequent Management Plan through our partnership with licensed professionals who understand these risks and how to manage them. We have completed a number of projects aimed at helping property owners and officers of a business understand their risk, and developing out a management plan, or in some instances removal and remediation of a site, to reduce operational stress. Testing and management of Asbestos can be a fairly inexpensive and efficient process to manage when property owners and officers of a company are proactive in this risk mitigation space. There are also subsequent benefits to regular testing, including: better success and rates for Property Insurance lines.

Contact us today if you need more information or would like to discuss your specific situation in greater detail. Alternatively, visit our Saunders Safety and Training website for further information by clicking the link below.

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How to prepare your business for an El Nino Summer

All the data points to a hotter than-average summer, which means Aussie businesses should prepare for extreme weather during the warmer months.

Here are some steps you can take to help prepare your small business, in case droughts and floods affect your area.

The Australian Actuaries Climate Index (AACI) indicate conditions are ripe for a destructive bushfire season across Australia this summer, following a dry winter and a rise in extreme temperatures.

According to the index, the frequency of extreme high temperatures was above average in northern and eastern parts of the country in autumn, but lower than average in the south and west.

Rade Musulin, lead collator of the Australian Actuaries Climate Index, says with Australia’s transition to an El Niño alert phase in late May, there is a strong likelihood rainfall will continue to decline and a significant dry period may begin.

“More dry weather, along with the record amounts of vegetation growth from three years of consistent wet weather, means the conditions are primed for potentially high bushfire risk in the summers ahead,” he said.

The Bureau of Meteorology currently estimates there’s a 70 per cent chance of an El Niño system developing. This weather pattern is synonymous with low rainfall and bushfires.

Prepare your business for bushfire season

While El Niño events, bushfires and drought are tough conditions for small businesses to manage, there are steps you can take to mitigate these risks.

1. Develop a comprehensive emergency plan

Create a detailed emergency plan tailored to the threat of bushfires and floods. This plan should outline evacuation procedures, communication protocols, designated assembly points and responsibilities for each employee during an emergency.

2. Make sure your insurance cover is up to date

Review your current insurance policies to ensure they provide adequate coverage for potential damages caused by El Niño-induced events. Speak with an insurance broker, who can discuss your options and the best cover for your specific business needs. 

3. Create off-site data backup and storage

Protect crucial business data and documents by regularly backing them up and storing them off-site or on secure cloud-based platforms. This will minimise the risk of data loss during extreme weather events.

4. Train staff to respond to emergency situations

Hold regular training sessions to educate employees about the emergency plan and the steps they should take during bushfires or floods.

5. Maintain landscaping and clear surroundings

Regularly maintain any garden around your business premises, trim trees and remove dry foliage. Similarly, ensure proper drainage to prevent flooding.

6. Check your communication channels

Make sure you have access to multiple communication channels to stay up to date on weather and evacuation orders. Use social media, emergency alert systems and reliable news sources so you know what’s happening, as it happens.

7. Develop a business continuity plan

Create a business continuity plan that outlines the steps to follow to resume operations after a disaster. This plan should address immediate recovery needs, temporary business relocation and any potential supply chain disruptions.

8. Do regular drills

Organise periodic drills to test the effectiveness of your emergency plan. Identify areas for improvement and make necessary adjustments based on the outcomes of these exercises.

Preparing for a dry summer 

El Niño-induced bushfires and floods can pose significant challenges to small businesses.

But with careful preparation and planning, businesses can increase their chances of minimising losses and bouncing back after a disaster. The key lies in being proactive rather than reactive when it comes to disaster preparedness. 

If you have any questions with regards to your cover and ensuring you are adequately protected this Summer, please don’t hesitate to reach out to us on (02) 9587 3500 or emailing theteam@wsib.com.au. Alternatively you can visit our contact page by clicking below.

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Ten steps to help prevent a cyber attack in your business

The latest cybercrime statistics make for sobering reading, with a 75 per cent rise in ransomware attacks in the 2021/2022 financial year and up to 200,000 vulnerable routers in Australian homes and small businesses.

The Australian Cyber Security Centre’s (ACSC) most recent annual report states medium-sized businesses with between 20 and 199 employees are the most at risk of attack, with the average cost of an attack for a business of this size being $88,407.

While the risk of cyberattack remains high, there any many preventative measures businesses can put in place to reduce the risk of attack and, should one happen, reduce its severity.

1. Make a plan 

Your approach to cyber security should have a clearly articulated strategy that’s regularly revisited. This should guide the actions taken by the business to ensure it adopts the latest cyber risk mitigation techniques. ACSC recommends adopting eight security controls to help prevent attacks. This framework is useful for directing a business’s actions around cyber security. 

The controls include taking away unnecessary network administration privileges from employees who don’t need them and putting in place multi-factor authentication for access the network. These are described in more detail below.

2. Secure the business’ internet connections

Make sure all the points at which the business connects to the public internet, such as remote desktop applications, file sharing software and webmail are secure and not vulnerable to penetration by hackers. It pays to work alongside an experienced IT professional through this step.

3. Safeguard all devices

All the common tools your team uses to connect back to the business such as their laptops, tablets and smart phones also need to be secured to ensure they are not a back door through which criminals can enter a business and exploit its weaknesses.

4. Configure automatic updates for software

The business should be fully protected for viruses and spam through the protections of a suite of leading anti-virus anti-spam (AVAS) software solutions and intrusion detection systems. Make sure any patches and updates are automatically installed so you’re protected from emerging threats.

5. Automate back ups

Like software updates, data should be automatically and regularly backed up offsite to a system of servers not connected to the business. That way, if criminals do infiltrate the system, they cannot access back-ups through it and delete them. This means in the event of an attack, the business can be up and running in no time, having accessed the most recent back-up. These systems should also be regularly tested, well before an attack occurs.

6. Implement multi-factor authentication

It should be nearly impossible for criminals to get into a system if it has the right protocols in place. These can include, but are not limited to, multi-factor authentication and mandatory regular password updates. As a minimum, passwords should include a mix of lettering, numbers, symbols and cases. Passphrases are even better than passwords, as they can be harder to crack yet easier to remember.

7. Audit third parties

Criminals can gain access to your system through external parties such as suppliers if they can access your systems remotely. Regularly audit their cyber security protocols to identify and fix and insecurities through which hackers and scammers could access your business.

8. Train staff quarterly

Cyber security training should be a routine aspect of staff professional development. At least each quarter, train staff about the latest threats and run simulations to identify staff who are at risk of opening phishing emails.

9. Respond immediately to threats 

Make sure to put protocols in place, so in the event of an attack, you can lockdown the system and stop criminals misusing it further.

10. Put in place a cyber insurance policy

Cyber policies can help businesses recover from an attack by paying for associated costs and helping to mitigate the effects.

How employment law changes could affect your small business

If you’re a small business owner, a good team is possibly your biggest asset, but it can be tricky to stay abreast of the rules around employing staff. 

These rules changed again recently, following the passing of the Fair Work Legislation Amendment (Secure Jobs, Better Pay) Act 2022.

So, what’s new, and how could it affect your business?

Flexible working

For starters, employees’ right to request flexible work arrangements has been strengthened.

That puts the onus on business owners to try to accommodate them, offer other reasonable alternatives or demonstrate why requests aren’t possible, according to McCabes Lawyers Principal Tim McDonald.

“If there’s no agreement, the employer can be taken to the Fair Work Commission, and it can make a ruling as to whether it’s reasonable for the employer to agree to those requests,” McDonald says.

KEEPING IT QUIET

Requiring employees to keep their remuneration details confidential – a common provision in employment contracts historically – is no longer permissible.

Revised pay secrecy provisions mean it’s now up to the individual employee to decide whether they want to share. 

As well as updating employment policies and contracts to reflect the change, business owners may need to consider how they’ll handle any conflict that may arise should an employee learn they’re being paid less than a co-worker in a similar role.

“That could be an issue in a small business if you’ve got people on different remuneration, and it’s made known to other employees,” McDonald says.

Strengthened sexual discrimination and harassment legislation

While sexual discrimination and harassment in the workplace were already unlawful, employers will now have to take more proactive measures to prevent and eliminate it.

“On a day-to-day basis, it’s going to have to be treated more like occupational health and safety,” McDonald explains. 

“In the same way employers have to think about the health and safety risks that ensue when people are put in certain situations, they’ll have to consider what risk there might be of sexual harassment, on a work trip or at an industry function, for example.” 

fixed-term contract restrictions

Repeatedly employing individuals on fixed-term contracts, in lieu of offering them permanent work has also been outlawed. Under the new provisions, it’s ‘one and done’.

“For some small businesses, taking on a permanent employee can sometimes be a big commitment, and they’ve been more comfortable maintaining fixed term arrangements which don’t carry an ongoing obligation,” McDonald notes. 

“But the government’s view was that it was unfair that employees had no remedy, if successive fixed terms contracts were brought to an end, so those circumstances have been restricted.”

seeking professional advice

The Secure Jobs, Better Pay amendment represents the biggest change to employment law since the introduction of the Fair Work Act, and there’s a lot that business owners need to be across.

Human resources management is one of the most complex aspects of owning a business and the cost of getting it wrong can have monumental financial implications for business owners, notes Jess Gleeson, Strategy and Compliance Manager at HR consultancy Now Actually.

Taking advice can help ensure you don’t inadvertently fall foul of the new provisions. 

“Determining what needs to be done can feel overwhelming, but you don’t need to do it alone – there are professionals who can assist you,” Gleeson says.

cover for employment-related claims

Ensuring you’re compliant with legislation and have appropriate insurance in place will help protect your enterprise. 

Employment practices liability cover can help mitigate the risk of employee claims related to discrimination, unfair dismissal and harassment.

This general information does not take into account your specific objectives, financial situation or needs. It is also not financial advice, nor complete, so please discuss the full details with us as to whether these types of insurance are appropriate for you. Deductibles, exclusions and limits apply. These insurances are issued by various insurers and can differ.

This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.  

 

 

Original article source: https://www.steadfast.com.au/well-covered/insurance-for-growing-business/how-employment-law-changes-could-affect-your-small-business-in-2023

Workers Compensation – Premium Rate increases released for NSW & Victoria

NSW – iCare

The premium rates for the Nominal Insurer workers compensation scheme will increase by an average of 8% for the 2023-24 financial year. This means premium rates for 2023-24 will increase from 1.48 per cent of wages to 1.60 per cent of wages.

Key changes for 2023-24:

  • Workers Compensation Industry Classification (WIC) rates increase by an average of 8% (some higher, some lower)
  • Employer Safety Incentive (ESI) evolves into the Safe Employer Reward (SER)
  • Claims Performance Adjustment (CPA) table of rates extended to 600+%
  • 8% increase to Loss Prevention and Recovery (LPR) claims adjustment factors
  • Minor changes to Dust Disease Levy (DDL) (as per SIRA’s instruction)

Every industry has its own inherent level of risk so icare applies a premium rate based on the safety performance of each industry over the last 5 years. For 2023-24, some businesses will see an increase less than the scheme average of 8%, and some will be greater.

For more information and to find out how your New South Wales premium maybe affected by these changes please reach out to your WSIB Account Executive.

Victoria – WorkCover Premium increases 2023/24

Premium rate increases announced by the Victorian government

The Victorian Government this week announced changes affecting the workers compensation scheme which, in summary, include

The average premium rate has increased to 1.8% from 1.272%, effective 1 July 2023

  • Legislative change is planned for eligibility to weekly payments for mental injury claims (stress and burnout) and claims lasting longer than 130 weeks. This is being considered, with legislation due later in 2023 and planned to come into effect in 2024.
  • Establishing Return to Work Victoria to bring a dedicated focus to piloting initiatives designed to improve return to work and prevention outcomes. WorkSafe is currently consulting with key stakeholders about how this will work.

For more information and to find out how your Victorian premium maybe affected by these changes please reach out to your WSIB Account Executive.

How does rising inflation affect Small Business and Personal insurance?

The rising inflation we’re experiencing now is affecting insurance in a number of ways.

Materials commonly used to replace damaged properties, such as building items and even labour, are in short supply, driving up replacement costs.
In these times, it’s important for small businesses and home owners to make sure the sum insured for their assets reflects their current replacement value so that if your property is damaged, the settlement should be sufficient to cover the costs.

If the sum insured is not accurate, this may impact the settlement received if you have to make a claim.

Insuring for the true replacement cost is crucial, and there is one major factor to consider:

Co-Insurance
In business insurance there is generally a co-insurance clause that states you have to insure for the replacement cost of the building as at the time you take out the policy.

That’s relevant in the current inflationary environment because, unfortunately, the cost of materials and building costs have increased significantly.

If the insured amount is $1 million and it’s going to cost $2 million to replace, you’re $1 million out of pocket.

If you don’t insure for full replacement cost, in the event of a claim, the insurer can reduce the amount of the payout even if there is not a total loss.

The way in which this works is complex and depends on the wording of the particular policy. However, the following is an example based on common wording:

  • Sum Insured on the building: $1,000,000.
  • Actual cost of replacement of the building: $2,000,000.
  • Cost of repairs: $200,000.
  • Amount payable under the policy as per co-insurance clause = ($2,000,000 x 80%) = $1,600,000.
  • Sum Insured of $1,000,000/ by amount payable $1,600,000 = 62.5% rate of cover
  • Cost of Repairs of $200,000 x 62.5% rate of cover = $125,000
  • Amount payable = $125,000. Leaving $75,000 uninsured / Co-Insured by You.

Although if the building burns down, the insurer only has to pay the sum insured. If the insured amount is $1 million and it’s going to cost $2 million to replace, you’re $1 million out of pocket.

Yearly review of sum insured recommended.

Underinsurance can be a serious problem in Australia, especially when people don’t regularly review the sum insured. Small businesses and home owners should aim to review the value of their assets at least once a year – possibly twice a year at the moment because the increases are so significant.

Every time a policy is renewed, you should be working out the replacement cost of the asset and talking to us about the adequacy of your program.

If your property or asset has an unusual feature, it’s best to periodically use either a quantity surveyor or a valuer to get a more accurate calculation.

Calculations should factor in a time lag.

Another point small businesses and home owners should consider is that if your building or another asset is damaged or destroyed, it may take a while to replace, as some materials are not currently accessible.

Jobs that previously took six months can now take 12 months because the materials aren’t available.

Also, if a significant amount of work is required, it will probably take a while to get council approval. In the time required to get either approval or for the materials to be sourced, costs could have risen again. All this needs to go in the mix when working out how much cover you require.

Please don’t hesitate to reach out to us on (02) 9587 3500 or theteam@wsib.com.au if you have any questions.

Original article source: Steadfast.