A Tradies Guide to Business Insurance

There is enough to worry about when running your business day to day let alone having to consider everything else that comes with the job like Tradies business insurance. From payroll and chasing debtors, it can feel like there are a million things to do and you’re the only one who can do it.

We are in the business of providing Tradies with useful pieces of information to help their business get moving.  One of those useful bits of information is Tradies business insurance. So, today we are going to help you understand some of the insurance products out there and what they can do for you as a Tradie. We are going to cover off 7 of the key insurance products available and what they are designed to help with.

 

Public Liability Insurance

This is one of the most common business insurances going around. Public Liability Insurance covers you if negligence or breach of duty results in personal injury of property damage to a third party.

You will find a lot of the time it will be mandatory to get your trades licence however it is always good to consider given the exposure you have while on the job.

Public Liability is not to be confused with in the event where say an employee of yours sustains an injury as that would need to be covered by your workers compensation insurance.

So how much public liability insurance is the right amount?

It depends on the size of your contract as some contracts require a certain level of protection.  However, the minimum amount of cover is $5 million.  Experts at TradeRisk have calculated a percentage breakdown of the level over cover Tradies opt for in Australia.

 

Tool Insurance

What is a Tradie without their tools?

Tool insurance can cover the costs if your tools are stolen and you need to replace them. The sad reality is, if you have good tools someone may consider flogging them and it happens more often that you would think.

Tool Insurance can be bought in conjunction with some other products however there are also stand alone policies available.

TradeRisk advise your typical tool insurance policy will cover;

  1. Fire damage
  2. Storm Damage
  3. Damage in a motor accident
  4. Theft of tools

 

Workers Compensation Insurance

It goes without saying Workers Compensation Insurance is incredibly important when you are running your own business.

Workers Compensation is an insurance payment made to an employee if they get sick or injured due to their work. It generally covers wages while they are not fit for work plus medical expenses and rehabilitation.

Workers Compensation is heavily regulated given the nature of the product and driven mostly by the state that you operate in. For more information on how your state operates and who provides workers compensation insurance, the fair work website has a list of the state based regulators.

 

Professional Indemnity Insurance

Professional Indemnity Insurance is a specialised product designed if you provide advice to your clients as a service. Professional Indemnity Insurance is designed to protect you if you have a claim made against you by a client because they have suffered some form of financial loss due to an error or omission you made during the course of your work.

It can be quite a complex product so exactly who needs it can be tough. Depending on what you do for work, sometimes it will be a minimum requirement to hold an active policy to have your trade licence or professional association membership. For example, Building Surveyors & Certifiers must have it to operate in all states of Australia.

So, what is the difference between professional indemnity and public liability?

Experts at Professional Indemnity Insurance have provided straight forward explanation of the differences of both policies.

 

Personal Accident Insurance

When you are a Tradie, being self-employed can bring great freedom but if you are unable to work due to an illness or injury it can be a very stressful time.

Personal Accident Insurance can cover some of your lost earnings while you are off the tools until you can get back on your feet.

 

Motor Vehicle Insurance

 If you have any Ute’s or Van’s on the road you need to make sure you have motor vehicle insurance that covers your vehicles why they are being used for work. It covers things like, accidental damage and theft.

If you hire a ute from TradieSpec, our vehicles already have insurance factored into the total cost so that’s one less thing you need to worry about.

 

Contract Works Insurance

If you are entering into a contract to complete work, you may also need to consider Contract Works Insurance. It is designed to cover you for a range of other risks including those you have no control over.  Required most often by builders to cover risks such as loss or damage to your project due to fire, storm, or other events.

Sometimes, it may even stipulate in the contact you must have Contract Works Insurance as part of the agreement.

 

Wrap up

Insurance can be a tough area to navigate. We wrote this article to highlight and raise awareness around some of the Tradies business insurance products available however we are not insurance experts. So, before you do anything, speak to a licenced and qualified insurance professional.

Many of these policies are essential before even starting work so we suggest contacting the team at Professional Indemnity Insurance and TradeRisk for key advice on your policies.