Which type of insurance covers independent consultants?
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.
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.