“Definitely not! Although the general aim of both types of policy is generally the same – to protect your income – the policies are actually quite different.

We could fill a number of pages on the technical differences between the two, but the bottom line is that an accident and illness policy is generally far more difficult to claim on when compared to a proper income protection policy.

Another important difference is around the term “guaranteed renewable”, also known as “non-cancellable”. With an accident and illness policy, the insurer can cancel your policy at any time if they think you’ve become too much of a risk. They can also exclude certain conditions as they wish.

For example, say you required a knee reconstruction whilst your accident and illness policy was in-force, the insurer would have to pay you for any time away from work, but at your next renewal they could add an exclusion to your policy stating they will not pay any further claims relating to your knee.

If you suffered a minor heart attack or stroke during the policy period, or decided to take up skydiving or some other dangerous pursuit, they may chose not to insure you at all when your next renewal is due. In this case, you may have great difficulty finding another insurer to offer any level of cover to you.

With income protection things are very different. Once your policy is in place, and provided there has been no fraud or dishonesty involved, the insurer MUST offer you a renewal each year and they cannot cancel your policy as long as you keen paying the premium.

If you suffer a dozen different claims relating to your back for example, the insurer will have to pay you each and every time. Furthermore, they cannot increase your premium regardless of the number of claims you make! Income protection and accident and illness can be very different beasts, so please don’t let your insurance broker try to fool you by selling you a “cheap” policy, as it may cost you a LOT more down the track.

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.

  • "Great trade insurance A+"
    | Tradesman Insurance |
  • "Very helpful good value and friendly would recommend"
    | Tradesman Insurance |
  • "Good experience."
    KNR Services Pty Ltd | Tradesman Insurance |
  • "Excellent service and nothing was a problem and a pleasure to talk to"
    | Tradesman Insurance |
  • "Great service and knowledge by the team, perfect for tradies wanting to get insurance cover knowing that its specialised for tradesmen."
    James Mott | Tradesman Insurance | Sydney
  • "Easy to deal with, no dramas"
    | Tradesman Insurance |
  • "I asked 3 brokers for 3 seperate quotes due to my current insurance having some grey areas in what my company was and wasn’t insured for. Cheryl Boyd was by far the most professional and efficient Broker to deal with and I now have the piece of mind that my company is properly insured"
    The Trustee For Nirvana Plumbing Trust | Tradesman Insurance |
  • "the communication was fantastic - will definitely use them again"
    J.W Coad & J.R Prosser | Tradesman Insurance |
  • "All good"
    STC Electrical Pty Ltd | Tradesman Insurance |
  • "Great quick response when inquiring, always friendly over the phone and well priced."
    Samuel William Newton T/As Captivate Painting | Tradesman Insurance | Noosa Heads
  • "Yes I would purchase their product again. I have found it to be teasonably priced for what it covers. If it remains priced competitively I would remain a customer."
    | Tradesman Insurance |
  • "Had to chase them for renewal and happens every year"
    | Tradesman Insurance |
  • "This time I felt the service was not matching my previous experience with Trade Risk. Firstly, I requested some explanation on the exemption of the small business stamp duty and the reply took a couple of days. Secondly, three days after I paid my premium I received a text message to remind me to pay before the due date. Overall, Trade Risk service is great and I wouldn’t hesitate to consider using Trade Risk Service in the future."
    | Tradesman Insurance |
  • "Wonderful service - very helpful"
    | Tradesman Insurance |
  • "Highly recommended as the call centre staff were fantastic and could arrange the cover on the spot."
    Mattheus F Bouma | Tradesman Insurance |
  • "They answered my questions quickly and were easy to deal with I would recommend them to other tradies"
    Oliver William Darvell | Tradesman Insurance |
  • "Was very helpful over the phone and payment made easy."
    | Tradesman Insurance |
  • "Very efficient and a good price"
    Adam Clive Laman | Tradesman Insurance |