Compare Tradesman InsurancePosted: 2012 June 18 by Shane Moore
For any tradesman looking at their insurance options, it's always important to compare what's on offer out there.
There are plenty of different insurance companies, brokers and advisers out there offering tradesman insurance, and each of the policies offered can differ in terms of the specific features and benefits.
Whilst most forms of trade insurance are fairly similar at a basic level, there are plenty of differences once you start looking deeper, and some can make the difference between a straightforward claim and a declined claim.
What to Compare
Insurance comes in various forms, and each type of tradesman insurance needs to be compared in a slightly different way.
As with most Australians, many tradesmen will want to compare the price of the insurance first, however it is important to consider all of the features and benefits of a policy, as well as its suitability for your particular situation.
Tool insurance is very popular amongst tradesmen, and there are some very important differences between the different policies available.
Almost all tool insurance policies will cover fire and storm damage, and damage caused by a vehicle collision or rollover, but when it comes to theft there are some major differences.
Some tool insurance policies will cover you tools for any type of theft, however most will only cover them if there is evidence that forced entry was required to access your tools.
Importantly, some tool insurance policies do not cover theft at all! We have seen evidence of an insurance broker recommending these policies without knowing about the lack of theft cover. This should be very worrying to all tradesmen.
Some policies also include cover for accidental damage, provided that the tool is not in use at the time.
Income Protection Insurance
When it comes to trade insurance, perhaps the most complex form of cover is income protection.
Whilst the cover itself is quite straightforward and easy to understand, there are many different policies and different options that can have a dramatic effect on your ability to claim.
Some policies will pay your claim even if you can still work for a number of hours each week, whilst other policies may only pay if you are literally flat out in a hospital bed.
One the most important factors to compare when it comes to income protection is the difference between a policy issued by a general insurance company (commonly known as accident and illness insurance) and a proper income protection policy issued by a life insurance company.
We don't have space to run through all of the differences in this article, but it is generally accepted that a proper income protection policy is far superior to a cheaper accident and illness type policy.
For more information on comparing income protection we recommend that all tradesmen speak with a qualified financial adviser.
Public liability Insurance
This is the most common form of insurance for tradesmen, and it is also the most straightforward form of insurance when it comes to making comparisons.
The basic cover offered under a public liability insurance policy is much the same from one policy to the next, however there are still some differences worth considering.
Your insurance broker will be able to talk to you about the differences between different public liability policies.
As with all business owners it is important for tradesmen to look for the best price on their insurance, however it is even more important to not take the cheapest insurance policy if it's not going to cover you properly.
Getting a great insurance package doesn't mean having to pay a fortune for insurance. By taking the time to compare tradesman insurance policies you can get yourself a good level of cover at a decent price.
If you don't have the time or ability to undertake a detailed insurance comparison you can always ask us and we will point you in the right direction.
This website contains general information only and does not take into account your personal needs and objectives. You should not act upon any information without first seeking advice from a qualified professional.
The information contained within this website is for your information only, and by completing an online enquiry your details will be referred to a suitably qualified and licensed professional.
Please click here for the terms and conditions governing the use of this website.
This website is owned and operated by Equita Financial Services Pty Ltd (Equita).
Equita does not hold an AFSL and is not authorised to deal in financial products.