What is tradies insurance?
Tradies insurance is designed to protect you and your business from the financial consequences of accidents, injuries and loss or damage to property. It can cover things like medical expenses, legal fees, and lost earnings. If you don’t have tradies insurance and something goes wrong, you could be left with a huge costs that you can’t afford to pay.
Types of tradies insurance
All trades are different and tradies have the flexibility to tailor their insurance needs by choosing from multiple levels of public liability insurance, flexible tool cover and commercial vehicle insurance as options.
The types of business insurance for tradies include public and product liability, commercial motor vehicle insurance, personal accident and illness and portable property insurance.
Public and product liability insurance
Public liability insurance covers you if you accidentally injure someone or damage their property as a result of your work. For example, if you’re painting a property and accidentally splash paint on your client’s car, public and product liability insurance would cover the cost of repairing the car.
Another example could be if a builder fails to adequately secure a roof which is being replaced and a storm causes internal damage to the property. Tradies insurance could cover the damages to the internal structures.
Does public liability cover subcontractors?
A tradie sub-contractor is an independent third party who provides a service on behalf of another entity. Sub-contractors generally specialise on one particular service, and tradies may engage several different sub-contractors as part of their overall offering to their customers.
A tradie could potentially be held liable for work performed by the sub-contractors. For third party injury or damage caused by a sub-contractor, the tradie will generally be the one who receives a demand from that third party. The insurer may then be able to pass on some or all of the cost of that claim to the sub-contractors insurer. Most insurers require policy holders to attain some form of evidence that any sub-contractors they engage have their own liability insurance in place.
Find out more about public and product liability insurance.
Commercial motor vehicle insurance
Did you know that if you’re a tradie, your motor vehicle insurance needs to be specifically tailored to the car or truck used for business purposes? The only exception is if you’re using the vehicle to get to work but nothing else business related. Having a personal car insurance policy does not guarantee you’ll be covered if you are using a personal vehicle for work or work-related errands.
Commercial motor vehicle insurance does cover the motor vehicles you use to operate your business. For example, if you’re an electrician and your work vehicle is damaged while driving to a job, you would be covered for damage to the vehicle as well any the tools and equipment damaged in the accident.
Personal accident and illness
Personal accident and illness insurance provides a weekly benefit in the event of injuries, accidents or illnesses that occur at work. For example, if you’re an carpenter and a structure falls on you at work causing serious injury, insurance cover would provide a weekly benefit while you recover.
Portable property/tools of trade insurance
Sadly, tools of trade are a preferred target for thieves because they’re easily exchanged for cash. Getting your tools of trade insurance right is far easier than dealing with inconvenience and cost if they are stolen.
Portable property or tools of trade insurance allows for the replacement of tools in the event of loss, theft or damage of the insured property (e.g. tools) you take on the road with you or stored at a worksite away from your main premises. For example, if you’re a plumber and your tools are stolen from your vehicle, insurance cover would cover the replacement costs.