Income protection is one of the best types of insurance a tradesman can have, and if you’re unable to work due to injury or illness for a period of time you’ll be glad you have it.

But, did you know that it could take up to two months to get paid, and you won’t even get paid for the first month?

Almost all standard income protection policies in Australia work like this:

  • Day 1: Your first day off work
  • Day 30 (one month): Your 30th day off work and you are now eligible to make a claim
  • Two months: You receive you first claim payment, paid in arrears covering the period from day 30 to today.

As you can see, you won’t actually receive any money for two months after your initial illness or injury, and you won’t receive any payment to cover your first 30 days away from work.

But there is a better way! The “day 1 accident option” can you paid in half the time and you’ll also receive payment for the first 30 days that you can’t work, provided that your absence is due to an accidental injury:

  • Day 1: Your first day off work
  • Day 30 (one month): Your 30th day off work and you receive your first claim payment which covers you from day 1.

Obviously this is a much better option, but it gets even better. Under a normal policy you have to be unable to work for the full 3o days, but with the day 1 accident policy you can be paid for as little as 4 days. Here’s how it can work:

  • Day 1: Your first day off work
  • Day 4: Your 4th day off work, and you are now eligible to make a claim.
  • Day 5: You return to work, and the insurer will pay you for the 4 days you couldn’t work.

This is a great option, and it significantly increases the likelihood of being able to claim on your tradesman insurance policy and receive a benefit.

All policies are different, and some insurers offering the “day 1 accident cover” option will have different rules. Whilst the better policies will allow you to claim after just four consecutive days off work, there are some insurers that require a minimum of 14 or even 30 days. If you are planning on taking this option, we recommend you look for a policy with a 4 day period.

Day 1 accident cover is a great addition to any income protection policy, and we strongly recommend that you consider including it in your tradesman insurance package.

For more information please contact us or request a free online quote.


Click here to compare premiums and save