Insurance for tradies: are you really protected?
The small trade enterprise you started now has you employing sub-contractors and turning over more than you ever imagined. Has your insurance cover grown with you? If not, your booming business could be left exposed.
Why the right insurance is important
If you’re growing your business, having the correct cover for the size of your enterprise and foreseeable risks is important. This could be the difference between your business keeping its doors open for the long-term or downsizing – even worse, shutting down completely after an incident or accident.
Consider the type of insurance
Tradies need public liability insurance and tools insurance.
You should also consider injury and illness insurance, or WorkCover (if you’re set up as a company) and vehicle insurance. For tradies operating in a workshop, property insurance is also a requirement.
You might not know where to start when it comes to organising your trade business insurance. Remember, ask as many questions as you can before you take out a policy or increase your cover.
As your business grows, and you may benefit from engaging an insurance broker, to give you peace of mind you’re covered correctly.
What is an insurance contract?
Insurance contracts can be confusing and difficult to understand. If you buy insurance direct from an underwriter, basing your purchasing decisions on price alone, can you really be sure you’re covered for the risks you face?
Insurance brokers take the time to understand your current insurance contracts, they can assess your individual risks, advise you on the type and level of business insurance cover you need, then shop around for the best prices available in the market. They may even have access to products that aren’t available through direct insurers. That means you’re not just benefiting on price, but your cover is also broad enough for your needs.
What if you have to claim?
You buy insurance so you’re protected if you are unlucky enough to have a claim. The downside of buying direct from an insurer is it’s you against them.
An insurance broker works on your side if a claim does arise – and can deal with the insurer, on your behalf, throughout the claims process.
When it comes time to renew your business insurance policy, your broker will conduct a re-broking check to find out if you have acquired or disposed of any assets, and reassess any significant factors affecting the value of your cover.
Insurance is necessary. Get the best protection with an insurance broker in your corner. Can you afford not to nail this?
imar can help tradies with all their insurance needs and this month (October 2019) if you take out a new 12-month imar tradies insurance policy (buy 11 months premium and get 12 months premium)* in the month of October, imar will shout you one month premium free. Terms, conditions, costs, limits and exclusions apply – read the Terms and conditions here.
- Join our Kick-Ass Tradies Facebook Group, for access to trade business specific conversations, tips and resources, plus a like-minded community of tradies.
- Book a 15-minute Game Plan Call with Andy, owner of Dr. DRiP plumbing and co-founder of Lifestyle Tradie, to clarify your priorities and get clear action steps.
This is a general overview of insurance issues. To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance policy.