Insurance might sound like it’s just another business expense, but it’s really there to protect you and your business when the unexpected happens. But with so many types of insurance for tradesmen, it’s important to make sure you’re properly covered. Let’s take a look at tradie insurance in Australia, and what you might need.
Why you need trade insurance
Even if you’re a really safe person and don’t think you’re at risk of accidents or issues, you can never fully prepare for everything, especially when you’re running a business. Purchasing insurance can give you the peace of mind to know you are prepared and able to handle anything that comes your way. On top of that, while it can add to your expenses, it would cost you a lot more to deal with any issues if you didn’t have insurance.
Additionally, some insurance policies are legal requirements before you enter into a contract or if you have other members of your team. You can find the best coverage by comparing different quotes and providers, and choosing the policy that gives you the coverage you need at the best price.
Types of insurance for tradies
There’s no single insurance policy that covers everything you might need as a trade professional, so you might need to take out multiple policies depending on the size of your business and the work you do. Below are the most common types of insurance and what they offer cover for.
Public liability insurance
This is typically the first cover that tradies get because it helps to protect you against a lot of unexpected issues that could occur. Public liability insurance for tradies covers you if someone else suffers an injury or damage to their property because of your work. While you are an expert at handling your work, unfortunately not everyone is, and even something as simple as a member of the public tripping over one of your tools can cause a big issue. Thankfully, public liability keeps you protected from any of these accidents and is often a legal requirement before entering a contract for work.
Income protection
Even if you’re very careful, there’s still the chance that an accident or injury can happen to you too. Income protection for tradies looks after you if you get hurt or sick and aren’t able to work for an extended period, providing a portion of your salary while you recover. Policies might differ in how long they’ll cover you while you’re off, but making sure you can keep earning while you’re off can be a difference-maker for a lot of people.
Worker’s compensation
Another one that is an absolute must-have if you’ve got employees and team members is worker’s compensation. It essentially provides the same cover as income protection but for your employees if they get hurt or sick. Worker’s compensation helps to cover any medical expenses as well as income loss. Employers are legally required to take out worker’s compensation insurance throughout Australia, though the exact requirements may differ by state or territory.
Tools and equipment insurance
For most tradies, it’s impossible to do your day-to-day work without your tools, and if the job can’t get done, your business goes nowhere. That’s why tool insurance for tradies — sometimes known as portable equipment insurance — is massively important, helping you to replace your tools if they’re damaged, lost or stolen. Cover can vary in terms of what equipment and tools are insured, and based on where they are stored overnight, so be sure to make sure your circumstances are covered adequately.
Business insurance
If your business has grown a fair bit, business insurance might be the way to go, covering for property damage, interruption to your operations and theft for your entire business. This one is particularly important if you have a physical location for your business, or if you have larger equipment and vehicles. Business insurance for tradies gives you peace of mind that everything is covered — not just you personally, but also your business so it can weather any storms that might come up.
What trade business insurance do you need?
The types of insurance policies you take out depends on the type of work you do and the size of your business. Different trades and professions carry with them different risks, so you can often tailor your packages to suit your individual circumstances. Additionally, the amount of cover you need for your business will depend on your size, and more specifically, how big an impact it would have if you experienced a disruption.
The best tradie insurance to start with is public liability, and potentially tools insurance, to cover you and your equipment against most of the daily risks on the job. From there, it’s about making sure you and your business are properly covered based on your size and day-to-day activities.
Supporting tradies
Trade business insurance isn’t the only way you can keep things safe and supported. If you want to make sure your business is free from issues and always on the right track, it’s time to check out Mira: a comprehensive business management software built to help tradies manage their admin.
With in-built job scheduling, quote and invoice generation, and integrations with leading accounting platforms, Mira makes business easy as. Start a free trial today, and experience the ease for yourself.