Modern insurance companies seem to offer coverage for countless scenarios – so much that many tradies try not to bother with them at all. In this blog, Skills Certified explore the types of tradie insurance available, and why you should be taking them more seriously.
Product & Public Liability:
Everyone makes errors from time to time, even the most adept tradies. Sometimes they are small, like minor scratches to a delicate surface, but other times they can be disastrous, such as when a member of the public is injured. Depending on the situation and the scale of the incident in which a tradie must pay damages, they can either do so out of their own pocket, or, if the sum is large and they have appropriate coverage with insurance, they can make a claim.
To save yourself any trouble financially, it is always prudent to have Product and Public Liability Insurance. Product Liability protects you against damages or the loss to a client’s property, and Public Liability is when your client, bystanders, or any member of the public are injured due to contact with your work.
If you are running a business that is employing staff, then for similar reasons as mentioned above, you need to have Workers Compensation Insurance. This coverage provides you with protection against situations where an apprentice, trainee, or other staff member is injured or becomes sick in their line of work, and lodges a Workers Compensation claim against you. And if you think you can just pay for their wages and forgo taking out any form of coverage – think again. If they require surgery, rehabilitation, or any other form of costly treatment, you could be liable to pay for it, in addition to their loss of income.
For many tradies, their tools are their income. Should you find them stolen or lost, especially if it is specialised equipment that can’t be easily replaced, you could find yourself without the ability to earn your income. By preparing for the worst and taking out Tools Protection Insurance, you are covered against losing your tools due to theft, fire, flood, and transit accidents, as long as it isn’t the result of your own personal negligence (i.e. if you left your tools lying around in the road and someone takes them). Taking out coverage and remaining vigilant is the best way to protect your tools and income stream.
Business Expense & Income Protection:
It is important to remember that even though you might have protection against everything that might go wrong with your business, you still need to consider your own health. If for whatever reason you become incapacitated from working, such as through illness or injury, you will be covered, should you have Business Expense Insurance & Income Protection. Business Expense Insurance covers any ongoing costs your business is obliged to meet, such as rent, and Income Protection will ensure your personal income continues to flow in if you are self-employed, leaving you stress-free whilst you recuperate.