What does insurance mean for tradies?

Let’s get back to basics. Starting your own tradie business can be a huge task and you’ll be looking for ways to cut costs wherever you can to save an extra buck. Every cent counts when you first start out and you’ll no doubt want to put as much back into the business as possible. However, tradesman insurance is not the place to cut costs with or scrimp on. Your insurance coverage should be comprehensive and tailored to your business needs.

Tradies insurance made simple

You’ve likely heard a lot of your fellow tradies talking about insurance. It might seem complicated, but it’s not so hard. Sometimes it’s just a matter of getting back to basics and making an informed decision about the policies you need to take out.

Tradies insurance is meant to protect you against financial loss if an insured event occurs. Things can go very wrong when working as a tradie as it’s a very high risk job. People can get hurt, property can be damaged, you can fall sick, your tools might get stolen, or perhaps you need to pay for a tax audit you didn’t expect to. These are all things that insurance can step in to pay for. There are insurance policies for just about anything to do with trade work.

It’s important to remember that each insurance policy will be different and there will be certain exclusions and extra options within each one. Exclusions are things which an insurer will not cover if something happens. You’ll need to read your policy carefully to make sure it suits your trades job needs and discuss with a broker if you are unsure about the fine print. Some forms of insurance can also be mandatory within certain businesses.

Some insurance policies will also require you to pay an excess when you make a claim. This is the amount you need to pay when you claim no matter what and is agreed upon on signing up for the policy. In general, the higher your premium the lower your excess, and the lower your premium, the higher your excess. For example if your allocated excess is $500 and you have a $1000 claim, you will only have to pay the $500 agreed and the insurer will take care of the rest. There are also waiting periods before making a claim is allowed with most policies.

Being properly insured

Having the right insurance in place means you don’t have to deal with the whole cost if something goes wrong. This is important as many things would be out of financial range for most people if they needed replacement, reimbursement, repair, or compensation otherwise. Paying a monthly premium is much more affordable than paying for the whole costs of a claim.

If you are unsure about what type of insurance you might need for your tradie business contact AllTradesCover today to discuss a policy and package to suit your business. You can visit the All Trades Cover website at www.alltradescover.com.au today or give us a call at All Trades Cover on 1300 826 850 to speak to a friendly expert. All information provided above is of a general nature, if you need specific advice we recommend speaking to a broker.

Summary

Getting back to basics is sometimes the best way to realise why you really need something. Insurance is no different. It might seem like an unnecessary expense, however even the most careful tradie can find themselves in a tricky financial situation should a claim occur. Here we go over the basics of insurance and why you really need it.

AllTradescover is Australia's fastest growing trade insurance provider offering low cost tradesman liability insurance and public liability insurance packages. Request a quote today.