Painters Plank

It’s a question we get asked a lot here at Trade Risk – what insurance do I need as a tradesman?

The answer can differ slightly depending on your trade as well as your personal situation. Some tradies will need more insurance and some will need less, but ultimately all tradies need some form of tradesman insurance.

Tradesman insurance is split into two groups; general insurance, which includes public liability and tool insurance; and life insurance, which includes income protection and other personal risk covers.

General Insurance

Under general insurance your two main covers are public liability insurance and tool insurance. There are a couple of other covers that can be included for more complex business structures, but these are the two that most tradesmen will need.

Public liability insurance will cover you for any damage that you cause to someone’s property, or any injury that you may cause to someone as a result of your work. Your tradesman public liability insurance policy will cover the costs of any damages or court action taken against you.

Tool insurance is fairly straightforward, and simply covers your tools against loss or damage. The specifics of the cover can vary from one insurer to the next, but generally the tradesman tool insurance policy will cover your tools against theft, fire and water damage, and damage resulting from a vehicle collision of rollover.

Some tool insurance will only cover theft whilst the tools are secured, whilst a small number of policies will cover your tools in open air. Likewise, some policies will cover your tools for any accidental damage, whilst others will only cover specific events such as vehicle accidents and fire.

Most public liability insurance policies are fairly similar between the different insurers, but tool insurance can differ greatly so it is definitely worth using an insurance broker who knows the trades industry and can match the right type of policy to your needs and budget.

Life Insurance

Although this category of insurance is called life insurance, it takes into account more than just life insurance. Also included is income protection, TPD insurance and trauma insurance.

For many tradies, especially the younger tradesman without any major debts or family dependants, income protection will be the only cover they consider. Income protection is there to protect your earnings whilst you cannot work, and will pay you a monthly benefit until you are able to return to work.

There are many different options available with income protection, and the policies can vary hugely from one insurer to the next. For this reason it is vital that you use a financial planner or insurance broker who knows the industry well and can recommend a policy that suits your particular needs and budget.

TPD insurance is less commonly taken by younger tradies, but it is another very important cover. TPD stands for Total & Permanent Disability, and the insurance will pay you a lump sum amount if you suffer an injury that leaves you in a serious enough condition that you are deemed unlikely to ever work again.

For the tradesman who does have debts or a family, all of these insurances are even more important, and there are a few others that come into the mix. Life insurance and trauma insurance should really be taken out by all tradies, but the reality is that most stick just with income protection and sometimes TPD insurance.

Life insurance will pay you a lump sum amount if you die or are diagnosed with a terminal illness. The funds are commonly used by your surviving family members to repay your business and personal debts, and also to provide a financial buffer now that they’re lost their main bread winner.

Trauma insurance is a little different, as it will pay out at a much earlier stage, when you are first diagnosed with a critical illness. The funds from your trauma insurance can be used to help fund your treatment and recovery, and to take away the financial stress when overcoming a major – but not necessarily life threatening – illness.

Tradesman Insurance

As you can see there are a number of covers that come under the tradesman insurance banner, and whilst some covers are more popular that others, particularly public liability, tool insurance and income protection, each policy has its place is a comprehensive tradesman insurance package.

Regardless of which cover or combination of covers you believe you need, the network of advisers available through Trade Risk are here to help navigate you through the process without any of the high pressure sales tactics that you may find elsewhere.

We are the experts in tradesman insurance, and we will help you to put together the package which best suits your needs, and importantly the package that best suits your budget and provides good value for your hard earned money.

For more information on your tradesman insurance needs please give us a call or complete our online quote request.