fbpx

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.

  • testimonial background
    "Would recommend"
    Anthony Everett | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Easy to deal with and very friendly staff."
    Goss Electrical Pty Ltd ATF Goss Electrical Trust | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "good service and price"
    John Patrick Griffith | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Service was excellent and quick"
    Pietro Zampierollo | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Trade Risk make liability insurance so very simple i would definitely recommend them and have done so to other tradies"
    Stephen John McMurtrie | Tradesman Insurance | Lutwyche
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Quick and easy renewal of my insurance for a good price, I couldn't ask for more."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great service. Efficient and timely."
    Black Ship Investments Pty Ltd As The Trustee For Alarcon Hernandez Trust | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Good price always respond quickly"
    Renae Ann Bradshaw | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent value for money."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "excellent, streamlined,"
    Greer Atkinson Trading As Oui Moet | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Good communication and an easy transaction to get the cover I needed"
    Kean As Electrical Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Best service from Jennifer Steger my account manager. Jennifer sourced me a better deal that suited my business and was cheaper. Would recommend to others and would buy again"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Haven't had to make a claim but everything else seems easy and straight forward. Cheapest price I could find too, hope that's a good thing??"
    Marius Ionut Nitu T/As Marius Nitu | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "No complaints, quick response happy as"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "extremely quick service very fast response to questions asked really great a pleasure to do business with"
    Joseph Ripolles | Tradesman Insurance | Alpine
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Always so easy to deal with."
    Scott Anthony Bowden | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "As always, hassle free and easy to deal with. I recommend them to anyone looking for business insurance."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Was extremely happy with the service very easy and very convenient"
    Probrush Painting Pty Ltd | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full