Building Project

Trade Risk insures more carpenters than any other single trade.

So it’s fair to say we know a thing or two about insurance for carpenters, and in this guide we’ll try to share that knowledge.

If you simply want to know about a single type of cover, feel free to scroll down to the relevant heading.  Otherwise read on…

Most chippies we speak with fall into one of three categories:

  1. “I just want the cheapest cover to get on the worksite”
  2. “I want decent cover but don’t want to spend too much”
  3. “I want to be fully covered whatever happens”

Using these three different categories is a great way to look at the different types of insurance available to carpenters.

“I just want the cheapest cover to get on the worksite”

There’s nothing wrong with wanting the minimum (cheapest!) insurance that you need for your trade.

For most carpenters working as a sole trader or

subcontractor this is public liability insurance.

Public Liability Insurance

This is the insurance you will often be asked for when subcontracting on a worksite, or potentially from a private client when working at their premises.

The policy will respond in the event that you cause property damage or personal injury to another person as a result of your negligence.

Public liability also provides limited cover for faulty workmanship, which can be very important for carpenters.

In most cases cover is limited to property damage or personal injury as a result of the faulty workmanship, and not the rectification of the faulty work itself.

For example if you built a pergola that collapsed due to a mistake you made, the policy would respond in the event that a falling beam injured someone below, but it wouldn’t cover the replacement or rebuilding of the pergola.

Public liability for a carpenter is very cheap, and a decent policy with $5 million coverage can be had for a little as $409.*

Online Quote

Trade Risk can provide you with an instant quote on your public liability insurance.  Simply click on the orange button and answer four quick questions.

* $409 based on a residential carpenter turning over less than $100k with no staff.

“I want decent cover but don’t want to spend too much”

These are the carpenters who still don’t want to spend a lot on insurance, but want to broaden the number of issues they are insured against.

Public liability is a given, and one of the common additions is tool insurance.  Beyond that, a basic income protection policy may be added.

Tool Insurance

Unfortunately thefts of tradie’s tools are becoming all too common.

Plenty of people would blame the so-called ‘ice epidemic’, and they’re probably not far wrong…

There are plenty of ways to protect your tools, but ultimately if someone wants them badly enough, there’s a good chance they’ll get them.

Stolen Tools

So that leaves tool insurance as the best way to protect yourself.

For some unknown reason tool insurance seems to get a bad wrap in online forums and social media, with people saying it is very expensive and difficult to claim on.

This couldn’t be further from the truth.  A carpenter can access $5,000 cover for around $300 a year, or $10,000 cover for around $550 a year.

This will cover your tools in the event of theft from a secure location, accidental damage, damage caused by fire or lightning, and damage caused in a vehicle collision or rollover.

To claim all you need is a police report, evidence of ownership (purchase receipts preferably) and replacement quotes.

It can take a few weeks for a claim to be finalised and paid, but waiting a couple of weeks and getting paid is a whole lot better than not getting paid at all.

Income Protection – Basic

In addition to public liability and tool insurance, some chippies falling into the “decent cover” category may also take a basic income protection policy.

Income protection can replace a big chunk of your taxable income for a period of time in the event that you are unable to work due to illness or injury.

When we’re talking about a “basic” policy, generally we’re talking about one that has a limited benefit period such as 2 or 5 years.

This means the policy will only pay for 2 or 5 years, which won’t be much help if you suffer a very serious injury, but it will be sufficient for the types of injuries most commonly suffered by chippies.

“I want to be fully covered whatever happens”

In this category we have the carpenters who want to make sure they and their family are fully protected from a wide range of risks.

Typically these guys have a wife and young children, as well as a mortgage to worry about.  A basic package might look after them in the short term, but won’t be much help in the long term.

Public liability, tool insurance and income protection are all a given, but for the income protection we’re looking at a more comprehensive level of cover.

Income Protection – Comprehensive

A comprehensive policy starts off the same as a basic policy, but the additional options are what takes it to the next level.

For more information we recommend checking out our dedicated income protection guide, but in terms of options we’re looking at a benefit period which runs all the way through to 65.

This means if you suffer a serious injury which means you might never be able to return to work, your income protection policy will keep paying all the way through to retirement age when your superannuation or the aged pension will kick in.

Other options include day 1 accident cover, which means you can start getting paid a lot sooner in the event of an accident.

Life, TPD & Trauma Insurance

In addition to income protection, these carpenters will also hold life insurance, TPD and trauma insurance.

In short, these policies cover the following:

Life Insurance – Covers you in the event of your death or diagnosis of a terminal illness.

TPD Insurance – Covers you in the event that you suffer an injury or illness which leaves you unlikely to ever return to work.

Trauma Insurance – Covers you in the event you are diagnosed with a critical illness.

For more information on these covers we recommend you speak with a financial adviser.  Trade Risk has a specialist financial adviser we can refer to you.

Other insurance types

Whether you’re looking at the cheapest basic cover or the more comprehensive cover, there are a few other insurance types worthy of a chippie’s consideration.

Tradies Ute & Trailer

Vehicle insurance for the ute is an obvious one.  Many carpenters have their ute insured with a retail insurer such as AAMI or NRMA, but we can also package it up with your business insurance.

If you’re undertaking your own building protects you may also requite contract works insurance, which we can also assist with.

More information

We hope that answers a few questions that you may have had about carpenters insurance.

Regardless of what level of cover you’re after, the team at Trade Risk can help you, just like we help thousands of other tradies.

If you’d like a quote on public liability, you can click here for an instant quote.  That system can also provide you with a quote on your tools.

If you’d like a more of a package which includes income protection and other options, please complete our comprehensive quote request.

Of course you can also call our friendly team any time on 1800 808 800.

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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