The impact of Coronavirus on your business insurance and workplace
Some people and businesses are starting to be impacted in some way due to the outbreak of the Coronavirus. The AB Phillips team has included some information that is relevant to you, as a business owner. We hope you find this information useful. If you still have questions relating to your insurance, please do not hesitate to contact your Account Manager on 1300 242 136.
The following information has been sourced from LMI Group, expert consultants to the insurance industry.
While Australia has been relatively protected from the spread of Coronavirus (COVID-2019), many businesses have been disrupted due to travel, import and or export restrictions.
According to the LMI Group, general insurance is unlikely to provide the protection that it does for traditional risks such as fire, burglary or storm.
The outbreak of SARS (Severe Acute Respiratory Syndrome) in 2013, prompted insurers and reinsurers to do modelling as to just how large claims could amount to in the event of a major pandemic. As a result, insurers added an exclusion to their policies stating that disruption from a number of highly effective diseases were not covered. A clause was introduced which excludes any disease that is notifiable under the Quarantine Act 1908 (Cth), which has been updated by many insurers in line with changes in legislation to the Biosecurity Act 2015 (Cth).
In some instances Business policies will have a limited cover for an outbreak of a disease if that outbreak occurs on the actual premises of the business; but pandemic events such as Coronavirus and other diseases declared to be quarantinable diseases are excluded totally from insurance policies. This means that regrettably there is no insurance protection for disruptions to business arising from Coronavirus.
Coronavirus and Australian workplace laws
The following is useful information to assist you in managing your business and people risk.
The following information is sourced from Fairwork Australia.
What happens if an employee or their family member is sick with coronavirus?
Full and part-time employees who can’t come to work because they are sick can take paid sick leave. If an employee needs to look after a family member or member of the employee’s household who is sick with coronavirus, or suffering an unexpected emergency, they are entitled to take paid carer’s leave. Casual employees are entitled to 2 days of unpaid carer’s leave per occasion. Full and part-time employees can take unpaid carer’s leave if they have no paid sick or carer’s leave left. An employee must give their employer evidence of the illness or unexpected emergency if their employer asks for it.
What if an employee is stuck overseas or required to be quarantined?
The Fair Work Act does not have specific rules for these kinds of situations so employees and employers need to come to their own arrangement. Employees should contact their employer immediately if they are unable to attend work because they can’t return from overseas or are required to enter quarantine because of the coronavirus.
You can find up-to-date information on quarantine requirements from https://www.health.gov.au/health-topics/novel-coronavirus-2019-ncov
What if an employee wants to stay home as a precaution?
If an employee wants to stay at home as a precaution against being exposed to coronavirus, they will need to make a request to work from home (if possible) or to take some form of paid or unpaid leave, such as annual leave or long service leave. These requests are subject to the normal leave application process in the workplace.
What if an employer wants their staff to stay home?
Under work health and safety laws, employers are required to ensure the health and safety of their workers and others at the workplace (as far as is reasonably practical). Workers also have responsibilities under those laws. Where an employer directs a full-time or part-time employee not to work, the employee would ordinarily be entitled to be paid while subject to the direction. You should consider your obligations under any applicable enterprise agreement, award, employees’ contracts of employment, and workplace policies.
For further information please refer to the following websites:
https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/coronavirus-and-australian-workplace-lawshttps://www.safeworkaustralia.gov.au/doc/coronavirus-covid-19-advice-pcbus
https://www.who.int/emergencies/diseases/novel-coronavirus-2019
https://www.worksafe.vic.gov.au/safety-alerts/exposure-coronavirus-workplaces