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“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.

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    "Easy to deal with and very friendly staff."
    Goss Electrical Pty Ltd ATF Goss Electrical Trust | Tradesman Insurance |
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    "good service and price"
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    "Service was excellent and quick"
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    "Trade Risk make liability insurance so very simple i would definitely recommend them and have done so to other tradies"
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    "Quick and easy renewal of my insurance for a good price, I couldn't ask for more."
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    "Great service. Efficient and timely."
    Black Ship Investments Pty Ltd As The Trustee For Alarcon Hernandez Trust | Tradesman Insurance |
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    "Good price always respond quickly"
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    "Excellent value for money."
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    "excellent, streamlined,"
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    "Good communication and an easy transaction to get the cover I needed"
    Kean As Electrical Pty Ltd | Tradesman Insurance |
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    "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"
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    "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 |
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    "No complaints, quick response happy as"
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    "extremely quick service very fast response to questions asked really great a pleasure to do business with"
    Joseph Ripolles | Tradesman Insurance | Alpine
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    "Always so easy to deal with."
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    "As always, hassle free and easy to deal with. I recommend them to anyone looking for business insurance."
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    "Was extremely happy with the service very easy and very convenient"
    Probrush Painting Pty Ltd | Tradesman Insurance |
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    "Straight forward, easy to follow and then fast service from one of their customer service reps once online forms were completed"
    Cameron Verrills Constructions Pty Limited | Tradesman Insurance |
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