Best Tradesman Insurance
How can you judge what the best tradesman insurance is?
Some may say that the cheapest tradesman insurance is the best tradesman insurance, but that would be very wide of the mark.
The best tradesman insurance will be different for each tradie, and will depend on your own unique circumstances as well as your needs and objectives.
To help you to work out the best tradesman insurance for you, we’ve broken down each of the tradie covers below:
Public Liability Insurance
Tradesman public liability insurance is pretty similar from one insurer to the next. Most policies contain very similar clauses and definitions, but there are a few differences.
With public liability insurance the differences generally come down to the little extra. For example some insurers include tax audit cover, which means the insurer will cover the costs of completing a tax audit if the ATO chooses to audit you. You may never need this cover, but if your policy includes it for free it’s a nice little bonus.
Tool Insurance
There can be some big differences between the best and worst tool insurance providers.
Some insurers, such as Zurich, offer a tool insurance option that can cover your tools for theft whilst they are left in the open air, whilst other insurers will only cover your tools for theft if they are securely locked up.
Some insurers have basic policies that don’t cover theft at all, so it’s definitely worth making sure your tradesman insurance broker knows the differences and is recommended a decent policy for you.
Income Protection
Tradesman income protection is where the really big differences can come in.
To start with, some general insurance brokers may recommend you a type of income protection known as ‘sickness and accident insurance’. This is an inferior cover, and can be described as anything but the best tradesman insurance!
A good income protection policy will give you flexibility in the way that you can claim. For example a good policy will allow you claim whilst still working for up to ten hours per month, where as other policies may require that you are confirmed to a bed before they’ll pay a claim.
Day 1 accident cover is another feature of good income protection policies. This option will allow your benefits to be back-paid to day 1 of the injury if you are unable to work due to an accident.
Even with the day 1 accident option there are some which are better than others. Some policies will only require you to be away from work for three consecutive days, whilst others require that you are away for a whole thirty consecutive days before they’ll pay your income protection insurance claim.
Another fantastic benefit of the best tradesman income protection insurance policies is known as ‘specified injury benefit’. This benefit pays you a fixed number of monthly payment for various injuries without having to go through the waiting period.
For example a good policy with this option will automatically pay you one month’s benefit for a broken wrist, two months benefit for a broken arm, three months benefit for a broken leg etc. This allows you to claim quickly without having to jump through too many hoops.
With specified injury benefit you will be paid the specified amount even if you return to work sooner, and you still get to keep the full payment. If you are away from work for longer than the specified period, your income protection will continue to pay as normal.
Life Insurance
With life insurance for tradesmen the policies really don’t vary much. They will all pay out when you die, and almost all of them will pay out when you are diagnosed with a terminal illness and are given a short time to live.
TPD Insurance
One of the biggest differences in TPD insurance policies for tradesmen is the definition type you choose. With TPD insurance you can choose an ‘own occupation’ definition or an ‘any occupation’ definition.
‘Any occupation’ means that a claim will only be paid if you are unable to return to any type of work ever again due to injury or illness. However the ‘own occupation’ policy definition will pay a claim if you unable to return to your own usual occupation.
This difference may seem small at first, but it can have a huge impact at claim time. If you are looking for the best tradesman insurance for TPD insurance, you really want to find a policy with an ‘own occupation’ policy definition option.
Trauma Insurance
Trauma insurance isn’t a type of cover that many tradies have thought about in the past, but thankfully this is changing as more tradesmen see the benefits of trauma insurance.
Trauma insurance covers a tradesman when they are diagnosed with a critical illness such as cancer, heart attack, stroke, or any other condition that is specifically listed in the policy.
As this insurance only covers conditions which are listed in the policy, generally the best trauma insurance for a tradesman is going to be the one that covers the widest range of critical illnesses and conditions.
Tradesman Insurance Companies
Another factor to take into account is the provider of your tradesman insurance. There are plenty of insurers out there, but some of them have better reputations than others.
The best tradesman insurance companies in our view are the big Australian based insurers. The household name insurers have the best reputations and the most to lose, and can therefore generally be relied upon to provide a good policy.
The best insurance company should also have a good track record of paying claims in a speedy fashion, as the best tradesman insurance in the world is no good if it’s not going to pay your claim.
Cheapest Tradesman Insurance
Rarely is the cheapest tradesman insurance the best tradesman insurance, because as with most things in life it’s a case of getting what you pay for.
However there is an exception. Not everyone can afford the best tradesman insurance, and not everyone can afford even the average tradesman insurance.
Some insurance is always better than none, so sometimes just getting the tradesman insurance you can afford could be the best insurance for you.
If you can’t afford the best tradesman insurance, at least get yourself some cover to protect yourself and your family. You will be glad you did.
More Information
To find out more about how we can find the best tradesman insurance for you, simply give us a call or complete our easy online quote request.
