When Home is Not the Safest Place

Accidents happen - everywhere

The latest injury statistics are in; and they’re a stark reminder accidents can happen anywhere.

As most serious accidents are now less likely to happen at work, it's even more important to have your own disability insurance policy and income protection, in place to cover you at home.

Read in this article

Why the safest place is no longer always the family home

• The good news is: continual improvements in workplace health and safety practices have meant that many workplaces are inherently much safer than ever before.
• The bad news is: The biggest risk to Australian families is now their own homes (and the humble council supplied Wheelie Bin).
  Most people don’t appreciate the danger in everyday home situations

If you want to avoid the busy A&E department at your local hospital, then you should reconsider owning a trampoline, discourage the kids from putting Lego up their nose, and be way more careful about not standing on the council wheelie-bin to clear out the gutters, or to sort out the Christmas lights or outdoor infrared heating strip above the back patio.

Significant improvements in road safety and workplaces mean that homes and leisure pursuits are now a greater cause of death and injury, than car crashes and industrial accidents.

The number of people who come through the A&E door with DIY, leisure and gardening injuries is striking. Misuse of the council supplied wheelie-bin has a lot to answer for. - Emergency A&E Nurse

Income Protection Insurance is like ‘Private’ Workers Compensation

• Income Protection & Disability Insurance (both can also be paid from a super fund) can provide an invaluable financial buffer for a family, against the financial impacts of disability, sickness or injury, by paying you a regular benefit to replace lost income if you’re unable to work.
• This type of insurance can cover you, 24 hours a day and 7 days a week, worldwide.
• It can also provide superior coverage to Workers' Compensation, because it’s usually designed to pay a benefit regardless of where the sickness or injury happens; at work, at home or elsewhere.

The changing world of Employers Workers Compensation cover

Workers Compensation is designed to only protect people who have injuries at work, not at their home.

When are you eligible to claim Workers Compensation?

Workers Compensation is governed by individual Australian states and territories. In NSW, for Workers’ Compensation to be payable, there must be a real and substantial connection between employment and the accident or incident which resulted in the injury.

This means that in NSW, if an employee is injured travelling to and from work, they will need to prove a real and substantial connection between the employment and the accident or incident out of which the personal injury arose, to be entitled to claim compensation unless you are an ‘exempt workers’ like police officer, paramedic and firefighter.

Generally, workers compensation in NSW is paid for up to 5 years, and in general, a employers super contribution (SG) is not payable on workers compensation payments.

Pro Tip: Under these narrow terms, many Australians may face financial disaster if they can only rely on Workers’ Compensation alone for income protection, given the majority of major accidents and injuries occur in a person’s home or during their leisure time.

Real Life statistics

According to the ABS, in 2021/2022, 3.5% of Australia’s working population (approximately 497,300 people) suffered a work-related injury or illness and only 31% of those (approximately 150,000 people) received workers’ compensation.

By contrast, of the 8.8 million Australians presented to emergency departments in 2022-23, more than half related to injuries that occurred in the home, based on data from the Australian Institute of Health and Welfare (AIHW)

• The most common injuries involved DIY home renovations, such as falling from ladders and mishaps using tools and machinery.
• Around nine Australians are admitted to hospital for DIY injuries per day. Patients are predominantly men between the ages of 55 and 74.3
• Other major causes of hospitalisation included motor vehicle accidents, and sports and recreation injuries.

While a record low number of sports and recreational injuries were reported in 2020, coinciding with COVID-19, sports-related injuries are on the rise again, with outdoor team sports recording the highest rate of injury and cycling reporting the highest number of hospitalisations.4

This is not surprising given 89% of Australians over age 15 (approximately 18.8 million people) play sport, according to the 2020-21 AIHW AusPlay Survey.

Drew Browne is a specialty Financial Risk Advisor working with Small Business Owners & their Families, Dual Income Professional Couples, and diverse families. He's an award-winning writer, speaker, financial adviser and business strategy mentor. His business Sapience Financial Group is committed to using business solutions for good in the community. In 2015 he was certified as a B Corp., and in 2017 was recognised in the inaugural Australian National Businesses of Tomorrow Awards. Today he advises Small Business Owners and their families, on how to protect themselves, from their businesses.  He writes for successful Small Business Owners and Industry publications. You can read his Modern Small Business Leadership Blog here. You can connect with him on LinkedIn.  Any information provided is general advice only and we have not considered your personal circumstances. Before making any decision on the basis of this advice you should consider if the advice is appropriate for you based on your particular circumstance.