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Employer penalised for workers’ comp blunder

The owner of a NSW hospitality business must pay a three-year “avoided premium penalty” of $18,000 for failing to cover her workers’ compensation liabilities, the State Insurance Regulatory Authority (SIRA) says.

The Hunter businesswoman, whose name is withheld, could have faced stiffer punishment, including double premiums for up to five years, a fine of up to $55,000 and/or up to six months in prison.

SIRA investigators took account of mitigating factors when determining the enforcement action. These included the employer’s self-disclosure, co-operation and remorse.

The employer contacted the authority after realising her public liability insurance, which she says she purchased on the advice of her broker, did not cover workers’ compensation.