Blue Collar Insurance

Tradesmen are often referred to as blue collar workers, and this even extends to the insurance world.

Whilst most insurance companies do not have separate policies for blue and white collar workers, they certainly do class them differently when it comes to the policy options and pricing.

In this guide we will cover the types of insurance which are important to blue collar workers, and the impact that being a blue collar worker has on the policy and premium.

Types of Insurance

There are three main types of insurance which are considered vital for blue collar workers, and these are public liability, income protection and tool insurance.

Whether you work on wages or as a subbie will have an impact on which of the three covers you need, but ultimately you should be covered by all three in some form.

You can read more about tool insurance by following this link, but below we will go into more detail on public liability and income protection.

Public Liability

Public liability insurance becomes important for blue collar workers when they work for their own business or as a subcontractor.

If you work on wages you should be covered by your employer’s insurance, however it is important to check that you are definitely an employee and not a subcontractor as we have seen this mistake made in the past.

There are no restrictions which apply to public liability across the board just because a business is classed as blue collar, however each insurance company will have certain restrictions and exclusions for particular industries and sectors.

Income Protection

Income protection is important for all workers, but it has been shown through claim figures that blue collar workers have even more reason to take out this form of insurance.

Claim statistics released by Macquarie Life back in 2009 showed that blue collar workers (which they classed as manual and trade workers) made up a massive 70% of all income protection claims.

Certain blue collar occupations will come up against some limitations when it comes to income protection. These are generally classed by the insurers as ‘heavy blue collar’.

Those classed as heavy blue collar may find that they can only access a 2 or 5 year benefit period on their income protection, whereas a standard trade such as a carpentercould get a benefit period which runs all the way to age 65.

The Importance of Good Advice

Although blue collar workers can access the same level of quality insurance that any other worker can, the fact that restrictions, limitations and exclusions do exist means that professional advice is extra important.

By using an insurance adviser who specialises in dealing with tradesmen and other blue collar workers you can enjoy the peace of mind that comes with dealing with someone who knows what they’re doing.

To request a quote on your trades insurance please complete our online quotation form or contact our office directly.