There really is only one minor issue with your proof:
[...] and have assumed the statement to be true for $k^2>k+1$ where $k\geq 2$.
Ah, but isn't that what you are actually trying to prove? That is, it appears that you are actually assuming what you are trying to prove. A simple fix will do though: "Fix some $k\geq 2$, and assume that $k^2>k+1$ is true. ..."
Is this an appropriate method of proving this statement to be true?
Not exactly. It seems like using induction here is a bit of overkill because you can easily prove the inequality by noting that $k^2>k+1\Longleftrightarrow k^2-k-1>0\Longleftrightarrow k(k-1)-1>0$, and this is clearly true when $k\geq 2$; to prove it is true, you could use some very basic calculus, but I think most people would look at $k(k-1)-1>0$ and would not worry about drawing up a proof that this is true for when $k\geq 2$ because it's clear the "$k(k-1)$ term" grows for larger $k$ and so on. In fact, you actually utilize this kind of reasoning when you go from $k^2+2k+1>(k+1)+1$ [the implicit reasoning is that $k^2+2k+1>(k+1)+1\Longleftrightarrow k^2+k>0$, and this is obviously true when $k\geq 2$, but someone may be a little annoying and require a proof though that would clearly be highly unreasonable]
Thus, I would not use induction here unless I were required to, which it sounds like you may have been. You may benefit from reading this post about how to write a clear induction proof. Just to show you how that might look in your case here, I have provided a more or less polished proof below. Hope it helps.
For $n\geq 2$, let $S(n)$ denote the statement
$$
S(n) : n^2 > n+1.
$$
Base case ($n=2$): $S(2)$ says that $2^2=4>3=2+1$, and this is true.
Inductive step $S(k)\to S(k+1)$: Fix some $k\geq 2$, and assume that
$$
S(k) : \color{green}{k^2 > k+1}
$$
holds. To be shown is that
$$
S(k+1) : \color{blue}{(k+1)^2 > (k+1)+1}
$$
follows. Beginning with the left-hand side of $S(k+1)$,
\begin{align}
\color{blue}{(k+1)^2} &= \color{green}{k^2}+2k+1\tag{expand}\\[0.5em]
&> \color{green}{(k+1)}+2k+1\tag{by $S(k)$, the ind. hyp.}\\[0.5em]
&= 3k+1+1\tag{simplify}\\[0.5em]
&> \color{blue}{(k+1)+1},\tag{$3k>k$ since $k\geq 2$}
\end{align}
we end up at the right-hand side of $S(k+1)$, completing the inductive step.
By mathematical induction, the statement $S(n)$ is true for all $n\geq 2$. $\blacksquare$