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Trade Insurance Reviews

Protecting your income is vital for any tradie, especially if you’re self-employed.

At Trade Risk we can assist with personal accident insurance, including optional coverage for sickness.

To request a quote on personal accident insurance please click the button below.

Up until September 2019 we provided income protection insurance via our in-house financial adviser.

We no longer provide this service, and instead offer personal accident and sickness insurance. If you would specifically like a quote on income protection, we are able to refer you to one of our partners.

Click here for more information on the above.

As we no longer provide income protection insurance, the information below is provided for reference only and does not relate to a product or service that we currently provide.

Income protection is a vital form of insurance for tradespeople.

Via our referral partner, we have access to all the leading providers of income protection for tradies and can get you covered quickly with minimal paperwork.

Importantly, they can provide proper income protection insurance – not just accident and illness cover.

Electrician

Some people only take out income protection insurance because they need it to get onto the work site, whilst others take it out because of the protection it provides to them and their family.

Whatever your reasons for taking out income protection, here at Trade Risk we can help you.

Income protection will pay you a monthly benefit if you cannot work due to injury or illness for a period of time. There are various options which will have an impact on the cover and the cost, and we will look at those in more detail below.

How our process works

Unlike public liability and tool insurance for tradies, which we can typically setup for you within a few minutes, income protection is a more involved process.

As we are not licensed to deal in income protection, we’ll pass your details on to our referral partner.

There are occasions where they can rush through cover same-day, but generally the process from start to finish takes a couple of days.

Why does it take longer?  Because they provide genuine income protection insurance.  It is more involved, but it is far superior to more basic policies.

Here’s how the process works:

1. Provide your details

The first step is to complete our online quote form.  This will give our referral partner the information needed to put together some quotes for you.

2. They’ll email your quotes

They’ll research the market and email the quotes to you.  They’ll include a few different options in terms of waiting periods and benefit periods.

3. You accept a quote and select your options

If you’re happy with one of the options, your financial adviser will put together a Statement of Advice (SOA) for you.  This document is required by law, and will outline the reasons behind our recommendations.  We’ll also send you the applicable Product Disclosure Statement (PDS) which outlines more information about the policy.

4. Application time

Once you’re comfortable with the information in the SOA and PDS, your financial adviser will arrange a time to run through the application with you.  Most of our clients choose to do this over the phone, but if you’re in Brisbane and would prefer to apply in person, they can come to you.

5. Approval

If your application is a straightforward, they may be able to provide instant cover as soon as the phone application has been completed.  If not, they’ll need to wait a day or two for the insurance company to provide their acceptance.

6. You’re covered!

Enjoy the peace of mind knowing that you now have a quality income protection policy in place.

If it sounds like a lot of steps above, it’s actually not that complicated.  All of our forms are completed online (and are mobile-friendly) and the application process all happens over the phone with minimal fuss.

What is Income Protection?

Income protection is a form of insurance which can replace up to 75% of your income whilst you are unable to work.

A good policy will cover a tradie not only for events that happen in connection with their work, but any event that leaves you unable to work due to injury or illness.

Your policy will be made up of three main factors which affect the coverage and the cost:

  • Benefit Amount: The amount you are covered for each month.
  • Benefit Period: The length of time benefits will continue to be paid for.
  • Waiting Period: The length of time before monthly benefits will commence.

We’ll go into more detail on each of these factors later in this guide.

Income protection insurance is especially important for self-employed tradies, but in reality it can be of benefit to any worker, as workers compensation and sick leave won’t take care of you forever.

Some brokers may recommend a policy to you known as “accident and illness” insurance or similar.  They might even call it income protection, but it’s certainly not the same thing.

Accident and illness insurance can be cheaper, but it is an inferior policy compared to genuine income protection.  The reason many brokers don’t offer genuine income protection is simply because they can’t.

Only an qualified financial adviser can be licensed to deal in income protection, and here at Trade Risk we have our own in-house financial adviser for this very reason.

If you’re serious about protecting yourself and your family, stick with the genuine cover.

Why Do I Need Income Protection?

For many tradesmen income protection will be mandatory in order to enter the work site. This is mainly the case for self-employed tradies and subcontractors, whilst employees will generally be covered by their employer’s work cover or sick leave.

Ultimately, if you can’t work you can’t earn money. And if you can’t earn money, who is going to pay the bills and keep food on the plate for your family? This is how income protection can really help a tradesman and his family.

Income protection is important for all workers, however it is especially important for tradesmen as this graph shows:

Income Protection Claims Graph

This graph released by Macquarie Life in June 2009 shows that manual and trade workers make up the overwhelming majority of income protection insurance claims.

The graph is getting a little old now, but we believe the stats would still be very similar today.

It’s also worth noting that most of the claims referred to in the graph are related to musculoskeletal injuries. Just because you don’t get sick doesn’t mean that you don’t need to be protected.

People who are self-employed, particularly in the manual trade professions, should definitely consider income protection cover.

Claims

We occasionally hear people complain that insurance companies never pay out.  It must be said, this comes from tradies who haven’t previously been with Trade Risk!

When we recommend an income protection policy to you, we don’t choose the insurance company based purely on price, and we certainly don’t choose it based on how much commission they pay us.

Whilst price is a factor of course, one of the main things we look at is our claims experience with each company.  We don’t want to spend time fighting claims.  We want to have our clients with insurance companies that we know do the right thing at claim time.

So far in 2018 our claims record is 100%.  That is, for each client who has lodged a claim with us, they have received a successful pay out.  That’s a record we’re very proud of.

Income Protection Claim Feedback

Because we do things this way it means we are not recommending the absolute cheapest option to our clients every time, which sometimes means we lose business to others who are willing to offer the cheapest option.  But we know that every client who does choose to go with us is going to have a good experience if and when they need to claim, and don’t say it won’t happen to you, because we know that it does happen to good tradies around Australia every day.

Income Protection Options

There are a range of different options when it comes to income protection, and the options you choose can have a major impact on the cost of the cover as well as your ability to make a claim on the policy.

The main options have been detailed below:

Waiting Period

The waiting period is the amount of time you must be unable to work for before your benefits will start. The typical waiting period for a tradesman is 30 days, which simply means you must be unable to work for 30 days before you will be eligible for any benefits.

A shorter waiting period will equate to a higher premium, whilst a longer waiting period will result it a reduced premium.

When looking at the waiting period you may also want to consider a popular option known as day 1 accident cover. Follow the link for more information.

Benefit Amount

This is the amount that you will receive each month once you go on claim. Generally the maximum you can cover yourself for is 75% of your pre-tax income, however you can cover yourself for less if you wish.

The cost of your income protection will be heavily impacted be the benefit amount that you choose, and a higher benefit amount will equal a higher insurance premium.

Benefit Period

The benefit period relates to the length of time you will continue to receive benefits for once you are on claim.

Benefit period options for income protection are generally 2 years, 5 years or age 65. By choosing an age 65 benefit period you will continue to receive monthly benefits until you turn 65.

A longer benefit period will result in a higher premium, and a shorter benefit period will bring a lower premium.

Income Protection Cost

The cost of your income protection will depend heavily on the options you select for your cover.

As well as the options selected, your premium will also be impacted upon by your age, smoking status and occupation.

Your premium will generally increase as you get older, and will also be higher if you are a smoker. Higher risk trades will also generally attract higher premiums.

Tax Treatment

Whether you’re a self-employed tradesman, subcontractor or simply on wages, income protection insurance is virtually always 100% tax deductible.

The flip side is that any benefits paid from your policy must be declared as income on your tax return, and will therefore by subject to income tax. With that in mind you need to ensure that you benefit amount is sufficient to cover your living expenses as well as the tax bill.

Tradesman Income Protection

Income protection insurance is available for virtually all trades and associated occupations in Australia.

Whilst there are some tradesmen who will struggle to obtain the top level of cover, such as scaffolders and tradies on underground mine sites, most standard trades will have no problem in getting the same level of cover that would be available for any other white collar manager.

When taking out income protection for a tradie it is important to use a financial adviser or insurance broker who specialises trade insurance.

A specialist adviser will know which providers and which policies will provide the necessary cover to suit your personal needs as well as your trade.

To have a chat about your needs or to get a quote, please contact us or complete our quick and easy online quote request.

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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