CBUS wants reinforcement of high-risk insurance cover

Mike Taylor

Managing Editor and Publisher

30 April 2026

Big building and construction industry fund, CBUS, has sought to reinforce the superiority of its group insurance settings in the context of high-risk occupations and the need for this to be given prominence in onboarding advertising.

The fund has used its submission to the Treasury consultation on onboarding advertising to urge a set of mandated warnings at onboarding for employees including:

• a clear, mandatory disclosure where a member’s stapled fund may not provide appropriate insurance for their occupation or circumstances.
• a prominent warning that insurance for people under 25 or with a low super balance will not be provided automatically unless you work in a hazardous job and your fund has a Dangerous Occupation Exception.
• a requirement to highlight key insurance differences, including hazardous occupations exclusions or inclusions.

The fund has pointed out that workers under 30 years of age represent close to a third of claims paid by CBUS under its Dangerous Occupation Exemption, which provides automatic insurance coverage to young workers in hazardous occupations, regardless of age or account balance.

It said that, critically, information about insurance cover often isn’t provided when workers select a super fund upon starting a new job. CBUS is calling for mandated warning during onboarding when a member’s stapled fund may not be appropriate for their occupation and if their low balance or age excludes them from default insurance.

CBUS Super Chief Member Officer Tom Garcia said choosing a fund without industry-specific cover could have immediate and lasting consequences for workers, particularly in high-risk industries.

Choosing a super fund tailored to your industry can be the difference between being adequately insured or not insured at all,” he said.

“For many workers, especially in high-risk jobs, insurance within super is a key source of financial protection in the event of death, disability or serious illness.

“This coverage is highly sensitive to fund choice, and decisions influenced by marketing or a lack of information during onboarding can have dire financial consequences for workers and their families.”

Garcia said workers starting jobs in building and construction, energy and other high-risk occupations, are unlikely to be able to take out cover outside of superannuation and therefore rely on default insurance in super to provide vital protection.

CBUS is one the few funds to adopt the Dangerous Occupation Exception (DOE), ensuring workers in these industries are not left uninsured.