Tradesman Insurance

Part of being a tradesman is managing risks.  Some of these risks we manage through safe work practices, but it’s also important to hold insurance for those risks we cannot eliminate.

Most subcontractors and self-employed tradesmen will need insurance of some sort.  Not just for their own benefit, but as a requirement to get onto some worksites and/or to obtain a licence.

So what are the most common forms of tradesman insurance required by Aussie tradies?  In this guide we will take a look at some of them along with what they cover and why you need them.

Common Forms of Tradesman Insurance

There are two main forms of tradesman insurance which are mandatory for tradesmen, along with a number of other covers which are not mandatory, but are still important.

When it comes to the mandatory forms of insurance, in most cases they are only mandatory for subcontractors and self-employed tradies.

Public Liability Insurance

Public liability is the insurance which is most commonly required by tradesmen.  This insurance indemnifies you against the financial liability that may come as a result of property damage or personal injury that you cause to another person through your business activities.

When you cause property damage or personal injury to another person or entity, generally you will be liable for their financial costs.  Ordinarily these costs would have to come out of your own pocket, but with the right insurance in place you can rely on the insurer to cover the cost of the claim.

Most worksites have mandatory requirements for public liability insurance, and in some cases it is required by the relevant state government in order to obtain your licence.  Common examples of this are Qld electricians and Victorian plumbers.

Income Protection

Income protection is also mandatory on many worksites for subcontractors and self-employed tradesmen.  The reason for this is that these types of workers have no access to sick leave or even worker’s compensation in some cases, so the only other option is income protection insurance.

An income protection policy will cover up to 75% of a tradesman’s income whilst they cannot work due to injury or illness.  It will cover incidents that happen both on and away from the worksite.

Although it is mandatory for many self-employed tradesmen, it is also a good idea for tradies on wages due to the comprehensive cover it offers.

Tool Insurance

Tool insurance is not mandatory, but it is a very popular form of trade insurance in Australia.

Unfortunately there are plenty of people out there who see tradies tools as an easy way to make a few dollars.  Tradies utes and vans are generally quite easy to break into, and power tools are generally quite easy to sell.

Tool insurance can protect your tools against theft, fire and storm damage as well as damage caused by a vehicle collision or rollover.  Not all tool policies cover the same things however, so it’s important to check the fine print.

Why is Tradesman Insurance Mandatory?

Tradesman insurance is mandatory for one reason – your own protection.

As a subcontractor or self-employed tradesman you are on your own when it comes to claims against you, or any case where you are ill or injured yourself and cannot work.

Tradesman Insurance Quotes

Obtaining quotes on tradesman insurance is easy that to the various trade insurance brokers which now operate online.

A simple search for ‘tradesman insurance’ via Google will reveal plenty of options for your needs, and in most cases you just need to complete an online form in order to obtain your quotes.

Not all tradesman insurance brokers are the same though, so it’s important to shop around and find the broker that you feel most comfortable with.

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