fbpx

The whole reason that you have insurance is so that you can make a claim if something goes wrong.

Therefore, if something happened that should be covered by your trades insurance, you’d be mad not to make a claim right?

The answer isn’t as crystal clear as it might seem…

There are two reason for this:

  • Policy excesses
  • The impact on future insurance

In this guide we’ll look at both issues.

Policy excesses

All public liability and tool insurance policies will have an excess which applies to claims.

What is an excess?  It’s simply the amount you need to contribute to a claim.  It is exactly the same with your home and car insurance policies.

The reason the excess exists is to discourage large numbers of small claims, which in turn helps to keep insurance premiums low.

Stolen Tools

Now let’s look at in in practice.

Let’s say you have a tool insurance policy with a $250 excess (which is typical for our tradie clients) and you have a $200 tool stolen.

Why would you claim for something that costs $200 to replace, when it’s going to cost you a $250 excess?

Okay so that one is worthy of Captain Obvious, but what if the stolen tools where worth $300?

You might think paying a $250 excess to replace a $300 tool is worthwhile, as you’ve just saved $50 on replacing your stolen gear.

It’s not quite so straightforward however, which leads us into the next section which covers the impact of making a claim on your future insurability.

Impact on future insurance

One of the questions asked by any insurance company is what claims you’ve had in the last couple of years.

If you’ve had a lot of claims, the insurer might decide that you’re a higher risk and should pay a higher premium, or they might decide they don’t want to offer you cover at all.

It can be a similar story at renewal time.  If your insurance company decides you’ve become too much of a risk, they may bump up your premiums or even refuse to offer you a renewal.

Before we go any further, we need to state that we would never, ever, discourage a client from lodging a claim for something they are covered for.

However, before you lodge that claim you need to think about the consequences down the track.

Let’s say you have a claim for $5,000 worth of stolen tools, or perhaps $5,000 worth of damage you have caused to a client’s property.

This is a no-brainer.  Of course you would lodge a claim and save yourself from being five grand out of pocket, or $4,750 after a $250 excess.

But what if the amount was $300 as per the earlier example?  Is claiming fifty bucks ($300 claim less your $250 excess) really worth it?

No insurance company is going to knock you back because you had one tiny claim, but if you have another one or two of those small claims over the following year or two, it could start to impact upon you.

Those two or three claims that totalled $500 might end up costing you more than that in the long run with increased premiums.

Think about your claims profile

The last thing we want to do is scare people into not making a claim!  The whole reason we provide insurance to tradies is so that they can be looked after when needing to make a claim.

Stolen Tradies Ute

What we are saying is that you should think about your claims profile.

If you’ve already made two claims during the year and now have another small claim, it may be better to cop the small claim knowing that it will help you at your next renewal.

On the other hand if you haven’t had a claim for a while and now have a small one to make, you can probably feel quite safe in getting a few dollars back from your insurance company.

No matter what happens, it is always a good idea to notify your insurance broker of any potential claim.

In fact when it comes to public liability and professional indemnity, it is vital that you advise your broker as soon as possible regardless of whether or not you’re going to lodge a claim.

Here at Trade Risk we have made it easy for tradies to claim on their insurance.  Our new online system allows clients to lodge a tool insurance claim online, even from your mobile.

Public liability is a little more involved, so we recommend that you contact us via phone or email if an incident has occurred which may be covered by your liability policy.

For more information and advice about claims please contact us for a chat.

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
    "I called for some confirmation on my insurance, it was a prompt reply and answered all my questions. Great service guys thanks."
    Clayton Wayne Earl | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I had to follow up trade risk to receive my renewal documents, and then wait 6hrs to talk to someone to follow up receiving my insurance documents a week after it had been paid."
    Bel Electrical Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very helpful and professional"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Great communication"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Happy with how easy it was to set up online. Fairly priced."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Friendly and easy to talk to"
    Anthony John Davenport | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I was very disappointed with the way the renewal advice was done. I felt like I was being bullied into making a decision. I requested information regarding the ‘advice’ given re the difference between the old and new policy and why. This did not happen. All I got was the new policy. I did my own research and chose Trade Risk as it was already done. Maybe I’m old school, I still think a phone call is a better option as an initial point of contact and followed up by an email . Thank you"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Excellent,"
    Samford Valley Plumbing Service Pty Ltd | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "You guys are the best"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "I still get constant stupid emails asking me to buy their product... I already have"
    Todd Alan Brownsey | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Apart from delays in finalizing the insurance I was happy with the service"
    AJ Atkins Electrical Pty Ltd ATF AJ Atkins Family Trust | Tradesman Insurance | Limestone Vic 3717
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    ". The service was good. The staff replied promptly to calls and emails /Prices were great."
    Del Romano Electrical Services Pty Ltd ATF | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "We have been with Trade Risk for 3 years and they have always been very easy to deal with. They respond very quickly and provide great customer service."
    Cheynie Shaw | Trade Insurance - Renewal | Melbourne
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Always a pleasure to deal with. Been my go to for many years now, will be back again next year"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Friendly and helpful staff were great to work with. Great product and value."
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Easy to deal with insurance renewal at a good price"
    | Trade Insurance - Renewal |
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very easy to deal with and helpful with all my queries would recommend and very fast service would definitely deal with them again"
    Raymond Mitchell | Tradesman Insurance | Perth
    star fullstar fullstar fullstar fullstar full
  • testimonial background
    "Very efficient and lovely to rtalk to"
    | Tradesman Insurance |
    star fullstar fullstar fullstar fullstar full
Loading...