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Carpenter

When starting your own trade business there are so many things to think about.

The first is probably whether or not you’re going to make enough money to pay the bills!

Somewhere on your list of things to do, or at least consider, is insurance.

Switching from a tradesman to a business owner is a big deal, and there can be a lot at stake, including perhaps your house.

In this guide we’ll run through some of the insurance types that a new trade business should consider, and which ones may be more important than others.

Public liability

The first type of insurance on any

self-employed tradie’s list needs to be public liability.

No matter how large your business is going to be, whether it’s just yourself or a team of twenty tradesmen, public liability is a necessity.

This is the one policy that is going to save your backside (and maybe your house) in the event that your business causes property damage or personal injury.

If the work of you or one of your staff was to result in the serious injury or death of a third party, you could be liable for hundreds of thousands or even millions of dollars in compensation.

Without public liability insurance this would quickly see the demise of most small to medium sized trade business.

You may also require public liability in order to obtain your licence if your trade is electrical or plumbing related.

Additionally, if you are a Queensland electrician or Victorian plumber you will need a special option on your policy known as consumer protection cover.

Many of the larger building companies require that all contractors have public liability in place, so you may have no choice but to take out cover.

Property

No matter what trade you’re in or what size your business is, your business is going to own some property.

Tools

For a small contracting business run out of a couple of utes we may be looking at basic tool insurance.

For larger businesses we may be looking at a workshop full of stock, equipment and other contents.

Either way it is important to insure your property so that if you lose some or all of it, you are not left out of pocket.

There are a range of covers that can assist here, from general property for your tools, through to fire, theft, flood and even money if you are operating from premises.

Are you employing staff?

If your business is employing staff you will need to hold workers compensation insurance.

Even if you aren’t employing staff, but are listed as the sole director of your company, you will still be required to hold workers comp in some states.

This type of insurance is mandatory in all states and territories of Australia, and is tightly regulated by each of the state governments.

In some states you can take out cover via a broker, whilst for other states (such as Qld) you must take out cover directly with the state authority (which for Qld is WorkCover).

Workers comp will assist your staff in the event that they suffer an injury whilst working for you.

Are you taking on large projects?

For trade business entering into building contracts there may be a need for contract works insurance.

Many tradies may be surprised at just how much responsibility they are taking on when they sign a contract.

Handyman

In some cases you may be responsible for a whole lot more than just your part of the overall building project.

It is a common misconception that public liability will cover you for any property damage that occurs on a building site.

However, public liability only covers you when you or your staff have been negligent, and it is this negligence which has caused the damage.

But what if something happens that had nothing to do with you, but at the time your contract stated that you were responsible for all or part of the structure?

This is where you can be exposed to major losses, but by having the right contract works policy in place you can protect yourself from these losses.

Protecting your own income

Workers compensation is all good and well for looking after your staff, but what about yourself?

As a self-employed tradesman or business owner (or a mixture of both) you should know that your income depends largely on your ability to work.

Income protection insurance can help to cover a large part of your income if you are unable to work for a period of time due to injury or illness.

More information

These aren’t the only types of insurance to be considered for a start-up trades business, but they are certainly a good start.

When going through the process of starting your business, we recommend that you speak with an insurance broker who understands your industry such as Trade Risk.

We will be able to run through your plans and ideas in order to recommend an insurance package that will suit your needs.

We completely understand that money can be tight when switching to self-employed, so our team can work to tailor a package that will also suit your budget.

If you’d like to have a chat with one our tradesman insurance experts please call us on 1800 808 800 or complete our online contact form.

 

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.

  • "The price was on point and the service was also great."
    | Tradesman Insurance |
  • "Excellent customer service and easy payment options"
    | Tradesman Insurance |
  • "The team always helpful."
    | Tradesman Insurance |
  • "They were pleasant to deal with when I first took the policy out and I am happy with their service."
    Gary Rodney Latcham | Tradesman Insurance |
  • "Easy to use, heaps of advance notice for when insurance is expiring. Great communication."
    Ricky Gan | Tradesman Insurance |
  • "Price is great Some emails and returning my calls were non existent even after asking a second time I rang for different premiums with increased excesses, spoke to someone, received no reply, rang again and left message but was not rung back"
    Richard WIlliam Morris | Tradesman Insurance |
  • "Pretty good .. jus t let us know the insurance is goin up if ur automatic do it"
    Ben Andrew Kerkham | Tradesman Insurance |
  • "Everyone I spoke to was helpful friendly and informative. But the computer system was down so I was not able to apply online myself or pay immediately over the phone. But I cannot fault the staff who did all in their power to help make insurance simple and easy as possible. Thankyou!"
    James Cameron | Tradesman Insurance |
  • "TradeRisk just make it so easy with their online tools."
    Alister Andrew Campbell | Tradesman Insurance |
  • "Easy to renew insurance"
    | Tradesman Insurance |
  • "My renewal quote was significantly less expensive than other companies could offer. The renewal process was simple and efficient. I've (thankfully) never needed to make a claim on a policy so cannot comment of the procedure here. I hope I never have to."
    | Tradesman Insurance |
  • "Yes I would recommend them, very efficient and prompt."
    Alan Sharpe | Tradesman Insurance |
  • "Quick and easy....Good value."
    G.a Turner & T.l Turner | Tradesman Insurance |
  • "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
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