Tradies Insurance

Tradies insurance encompasses a range of different covers to protect yourself, your business and your customers.

Many tradies are required to hold insurance in order to work. Sometimes this is a licensing requirement, whilst in most cases it will be a requirement of the building company using your services.

The range of polices which come under tradies insurance are split between business insurance and personal insurance. In this guide we will take a look at both classes of insurance.

Business Insurance for Tradies

The business insurance policies offered for tradies are classes as general insurance products. These policies are dealt with by general insurance brokers.

Public Liability

Public liability is the most common form of insurance for tradies. This cover protects you against the financial costs of any property damage or personal injury that you cause to other people via your business activities.

Plasterer

Many tradies working for their selves (including as a subcontractor) will find that public liability insurance is mandatory in order to enter most large worksites.

Public liability is also mandatory for some tradies in order to obtain a licence. Examples of this include Queensland and Tasmanian electricians as well as Victorian plumbers.

Tool Insurance

Tool insurance can protect your tools against a range of risks including theft from a secure location, fire and storm damage and damage caused by a vehicle collision or rollover.

Not all tool policies are the same, so it’s important to read the policy documents to ensure the cover meets your needs. Look out for tool insurance policies that don’t cover theft, as they are out there.

Personal Insurance for Tradies

The forms of tradies cover regarded as personal insurance are generally dealt with by a financial adviser or planner. They are regarded as life insurance products.

Income Protection

As with public liability, income protection insurance is mandatory for many self-employed tradies working on larger worksites. Without this cover you may not be allowed on site.

Income protection insurance can replace up to 75% of your income for a period of time if you cannot work due to illness or injury. It is important for tradies who do not have access to sick leave and worker’s compensation.

Although income protection is regarded as personal insurance, the premiums are generally 100% tax deductable for tradies, even if you are on wages or salary.

Life, TPD & Trauma Insurance

These forms of cover are generally more popular with tradies who have a wife and children to support, as well as other major financial commitments such as a mortgage.

Life insurance pays a lump sum to your family if you die, whilst TPD pays a lump sum if you suffer an injury or illness serious enough that you are deemed unable to return to work ever again.

Trauma insurance will pay a tradie a lump sum amount upon diagnosis of a critical illness such as heart attack, stroke or cancer, along with dozens of other conditions.

Each of these covers fall within the life insurance family, and are important for any tradie who cares about the wellbeing of his family.