As a trade business owner, you’re probably so busy with your daily tasks that you don’t even get time to review your insurance.
However, insurance is something that should not be neglected. There are different types of insurance specifically designed for tradies. But which one should you choose? The one that you really need? Or the one that the pushy insurance salesman is trying to sell?
In this article, we’ll inform you about various insurance options for tradies that are available in New Zealand and Australia.
Feel free to choose the one that suits you or not choose any at all (but just have it in the back of your mind in case you need it someday).
1. Public liability insurance
This insurance generally covers any accidental injury and property loss caused by you to a member of the public and their property. As a tradie, you’ll likely find yourself working on someone else’s property quite often.
And if, God forbid, you accidentally cause some sort of damage to that property, you could be liable to pay the price. Also, if you’re in charge of a job site and any outside person gets injured, well, then it’s on you mate. Public liability insurance can offer significant help if your job site is potentially dangerous and a lot of outsiders visit it daily (for example, a big construction site).
2. Worker’s compensation insurance
Tradies don’t sit behind a desk for eight hours and work on a computer – they’re infield forty hours a week working with tools. This increases the chances of injuries significantly. Whether it’s fitting a gas line or building a bridge, workers can get injured anytime and that’s when worker’s compensation insurance, also known as employer’s liability insurance, comes into play.
As the name suggests, this insurance will cover any medical costs, lost wages or any other expense that comes along with a work-related injury. In Australia, providing a worker’s compensation insurance is compulsory for all employers in all states.
3. Asset protection insurance
This is probably the most important insurance for tradies. When your livelihood depends on your tools, it’s not a bad idea to get them insured. On a side note, you should also include your ute and any other vehicles that you use for business purposes while counting assets.
Asset protection insurance, such as tool cover and vehicle cover can save you thousands of dollars in the event of theft or loss of your business-related assets. For instance, if you run a landscaping business and your lawnmowers get damaged, a tool cover might save your business!
4. Statutory liability insurance
As a tradie, you might unintentionally break the rules that are set by the government. Having a statutory liability policy can protect you from fines and penalties if you ever find yourself in such a situation. For example, if your staff are working with toxic substances and you forget to provide even one piece of protective clothing, you might be violating Health and Safety legislation. And if an employee gets injured because of your negligence, you better hope you have statutory liability insurance.
5. Personal accident and sickness cover
This one’s for you – a self-employed tradie who rolled up their sleeves and started a business. It’s a great feeling to be in control of your income and have a small family of clients that you work with. But if you fall sick or have a work-related injury, you probably won’t have any financial back up to support you until you recover.
A personal accident and sickness cover is like a safety net for you when you have health problems. It can provide you with some compensation so you can maintain your lifestyle until you’re fit to resume work again.
Conclusion
Having the right insurance could save your bacon when things aren’t going as planned. Unprecedented events can occur anytime, so it’s worthwhile being aware of various insurance options.
We’re not insurance agents and you should definitely seek legal advice before choosing an insurance cover. However, there’s something else we can help you with.
