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Angle grinder

At Trade Risk we assist our clients with both business insurance – such as public liability – and personal risk insurance – such as income protection.

Both of these insurance types can be paid monthly, and occasionally we’re asked by tradies why they have to be paid separately and cannot be combined into a single payment.

And we understand why.  Of course it would be nicer to have a single monthly payment, but for reasons outlined below, it just isn’t possible.

But other brokers do it…

Ah yes, other brokers might tell you they can combine your public liability and ‘income protection’, but what they’re selling you isn’t really income protection insurance.

Confused?  You’re not alone!

Here’s the thing.  Insurance brokers are not licensed to provide advice on proper income protection insurance.  Instead they offer something which is goes by various names such as ‘accident and illness’ or ‘personal accident’ insurance.

Quite often they’ll just call it income protection, as that is the term most clients and tradies are more familiar with.

But if you want a real income protection policy, you’ll need to deal with a qualified financial adviser.

Not all insurance firms will have one of these, but here at Trade Risk we want only the best for our clients, so we have qualified insurance brokers as well as our own financial adviser.

So we can provide you with real income protection insurance.

What’s the difference between real income protection and the other type that a broker will sell you?

There are too many differences to list in this guide, but it’s safe to say that proper income protection is generally far more comprehensive in its coverage than the inferior options.

Ute Racing - Toby Price

But if both are still through Trade Risk, why can’t they be combined?

Fair question.

Whilst both your business insurance and income protection are looked after through the same office, they must still be kept separate in terms of payments.

This is because insurance brokers and financial advisers operate under different licenses.  Both are under Australian’s Financial Services Licences, but both are in different classes.

With our insurance brokers authorised under one licence, and our financial adviser authorised under another licence, the insurance payments simply must be kept separate.

Furthermore, the two different classes of insurance are paid for differently when choosing the monthly option.

When paying business insurance monthly, you are using a method known as Premium Funding.  In this case a third-party pays the annual premium, and you repay them in monthly instalments across the year.

But when paying income protection of life insurance monthly, you’re simply paying the insurance company directly via monthly instalments.

It might not sound too different, but from our side of things it certainly is.

So the fact there are two different classes of insurance involved, and therefore two different licenses and insurance companies, means that monthly payments for the two just cannot be combined.

But it doesn’t have to be a big deal

Just because we can’t combine these payments certainly shouldn’t be a reason for any tradie to take the inferior option.

Sure you’ll have two separate monthly payments with Trade Risk, but you’ll also have superior coverage (when comparing real income protection) and you’ll also have the benefit of accessing specialists in the two different areas.

Trade Risk Office

You’ll still be dealing with a single team operating out of a single office, and a single point of contact whenever you need to contact us.

We can also arrange to have your monthly payments for both insurance types come out on the same day each month, to make things a little easier to manage.

The one point we really need to stress is that if another provider is offering you a combined policy or payment for your public liability and income protection, it is almost certainly not real income protection and you may end up with inferior coverage.

Having a combined monthly payment will be little comfort when you need to make a claim and discover that your cover isn’t up to scratch.

Update

But hang on…  What if you’re happy to have a more basic policy so that you can combine premiums, and maybe save some money?

What if you don’t really care about the cover, and just want the cheapest and easiest option to get onto the worksite?

We wouldn’t typically recommend it, but if that’s your objective, we know that some level of cover is better than no cover at all.

That’s why we’re working with our partners on a budget combined policy.  It’s not here yet, but it will arrive in 2018 to give tradies yet another option for their insurance.

Stay tuned for more announcements over the coming months.

Combining public liability and income protection

Tradies Love Trade Risk

In 2017 Trade Risk was awarded a Gold Trusted Service Award for the amazing service we offer to thousands of tradies from around Australia.

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    "Very polite and great value"
    | Tradesman Insurance |
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    "Good service no hassles have recommended trade risk to a few people."
    Matthew Hore | Tradesman Insurance |
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    "The Trade Risk service provided was seamless as they advised me in advance that my trade insurance was due and after completing my renewal online Trske Risk came back with a good premium and completed the process without any unnecessary communication. Great service that I highly recommend."
    Joseph Mifsud T/As Joe D Handyman | Tradesman Insurance |
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    "I have always been happy with their service and would recommend them definately."
    | Tradesman Insurance |
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    "I was caught out renewing my policy, but Trade Risk organised everything and made sure I was covered with my Public Liability Insurance."
    Peter Torti Pty Ltd | Tradesman Insurance |
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    "Yeppppppppp"
    | Tradesman Insurance |
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    "Good price & great service"
    | Tradesman Insurance |
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    "Being in a bush fire disaster zone , your safe are lovely They were helpful and quick Really nice That’s what we need Thankyou"
    David Brazzani | Tradesman Insurance | Narooma
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    "The Team at trade risk sorted out my request quickly and efficiently"
    Oliver William Darvell | Tradesman Insurance |
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    "Very quick response and easy to deal with."
    Paramount Construction Group Pty Ltd | Tradesman Insurance |
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    "excellent communication - very efficient service"
    Jake Robert Prosser | Tradesman Insurance |
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    "Great service, easy to deal with. Found us great comparison rates when renewing our insurance"
    J Bremer & A Magyar | Tradesman Insurance |
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    "Can't complain about the pricing and coverage. They're a bit delayed in getting a renewal notice and quote for me to be able to make payment - this needs improvement."
    Andrew Gardiner | Tradesman Insurance | Ipswich QLD
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    "Better pricing, goes up every year risk does not !"
    Brian Arthur Chedgey | Tradesman Insurance |
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    "Trade Risk is very good to deal with and really look after their customers"
    Saiyaaz Khan | Tradesman Insurance |
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    "Was very easy as I have had an insurance broker for last 15 years who was charging me way to much."
    B&H Cotter Pty Ltd ATF The Cotter Family Trust | Tradesman Insurance |
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    "Easy to deal with and gentle reminders on policy expiry. Daughter works in insurance and still recommends this company ."
    | Tradesman Insurance |
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    "Prompt and timely reminders and receipt after payment"
    David Vickers | Tradesman Insurance |
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