Yes: All employers in Papua New Guinea are required to have workers' compensation policies for their workers.
This requirement is specified by the Workers' Compensation Act, 1978, and applies to all companies that:
- Have employees.
- Work with contractors.
- Employ seamen on a Papua New Guinea ship or a ship whose first port of clearance and whose destination is PNG.
They must also register with the Office of Workers' Compensation, a part of the Ministry of Labour & Industrial Regulations.
Workers' compensation is more than just an obligation. It's a resource that provides financial protection to workers and their families.
What does worker's compensation cover?
Workers' compensation is a type of insurance that offers financial compensation to employees who experience injury or death as a result of the nature of their work.
These policies provide employees and their dependents with financial assistance to cover the costs of lost wages, medical treatments and, if necessary, funeral expenses.
There are numerous situations that qualify for use of a workers' compensation policy. According to The Workers' Compensation Act, 1978, employers are liable for any injury that's caused by or sustained in the course of a person's employment, so long as it's not deliberately self-inflicted or due to the misconduct of the worker. In some cases, this includes injuries that take place during a commute to or from the place of work.
Additional insurance policies for sole traders
Workers' compensation is just one type of insurance that sole traders must have. Business insurance is a wide-reaching category and can cover a plethora of situations.
A few additional insurance considerations sole traders should keep in mind include:
- Public liability: Any company can pose a small risk to the general public. If a shopper slips on your wet floor, for example, your business could be held liable for their injury.
- Infrastructure protection: Your equipment and other property is essential to the continuity of your business operations. Should they break or get stolen, your company must be able to replace or repair them quickly so you can get back to normal operations.
- Vehicle insurance: If your business requires use of a vehicle, you need a specific insurance policy for it. This includes if you or your employees have personal vehicles that are used for commercial purposes, or if you have dedicated vehicles for your company.
- Earthquake: PNG is prone to earthquakes due to its proximity to the Pacific Ring of Fire, which is known for high levels of seismic activity, according to the BBC. Business owners can prepare for losses due to earthquakes by investing in an earthquake insurance policy.
There are many other types of coverages available for businesses in PNG. The most important thing for sole traders to know is that business insurance is a resource intended to financially protect their company when something goes wrong.
How to ensure your business has the right insurance
Every business is unique, which means the insurance needs of one company likely won't be identical to another's. However, there are a few basic types of insurance that apply to most businesses, including:
- Public liability.
- Workers' compensation.
- Motor Vehicle insurance.
- Earthquake insurance.
The level of coverage may vary between different companies, depending on the nature of their work, geographic location, number of employees and more.
The best way to ensure you have the right protection for your company is to speak with a knowledgeable insurance agent. To learn about the business insurance policies that could be right for your company, reach out to Trans Pacific Assurance Limited for a free quote.