Not all employers pay insurance companies to manage employee
work-related injury claims and compensation. Many choose to
self-insure, either individually or through a mutual specialised
insurer like StateCover.
This approach offers significant benefits as well as risks and
obligations.
Section 151Z – the employer's friend
One benefit is the ability to recover compensation paid to an
employee, where a third party is responsible for the employee's
injury. Given that compensation payments are a direct expense to
your business, any opportunity to recover them should be taken.
This ability is granted by Section 151Z of the Workers
Compensation Act 1987 (NSW).
The key is to establish that a third party either caused, or was
in some way responsible for, your employee's injury, and that
they are liable to pay damages to your employee.
