Being a tradesman is a varied and active profession to work in. You will always be in demand for jobs, you get to help people and chances are you will get to be your own boss. Win-win!
But like any business, being a tradesman has its own risks. To be around for the long run, you need to ensure your business is protected from financial risks. This is where insurance comes into play.
Just because you’re a small business or a sole trader doesn’t mean you don’t need to insure your business. Real life risks can happen to anyone, not just the big fish.
No matter what the size of your business, every business needs to have insurance. The devastating financial impact of a claim is hard for many small businesses to recover from, sometimes forcing them to close their doors for good. Don’t become a statistic.
There are a whole range of modalities that tradesman insurance covers, including:
- Carpenters and woodworkers
- Electricians
- Handymen
- Plumbers
- Concreters
- Garden and lawn maintenance
- Painters
- Bricklayers
- Lawn Mowing Services
- Tilers
Tradesman insurance can provide protection against risks such as:
- Claims made against you or your business for injuring a third-party or damaging their property while working
- The theft of equipment or tools
- Damage caused to your equipment or tools
- Loss of income when your business cannot operate due to an insured loss
Having peace of mind that your business is protected if a claim was to occur is an invaluable investment to safeguarding your business for the long run.
Why do Tradesmen need Public Liability Insurance?
One of the first types of insurance for tradesmen you need to consider as a tradesman is Public Liability insurance. Put simply, Public Liability insurance protects your business from financial risk if you are found liable for causing injury to a third-party or damaging their property.
Whether you’re working on a construction site or performing renovations at a client’s home, as a tradesman you have a responsibility and obligation to ensure a safe work environment.
If your business is found to be negligent during your business activities, the outcomes could be financially devastating, quickly causing you to close up shop for good.
It’s important to note that if you are operating as a contractor, to check the minimum amount of Public Liability cover you are required to have. It may also be a legislative requirement within your state or territory to have Public Liability cover to meet required standards. It may also be a requirement to become a member of a certain trade association.
Tradesmen Business Risks
Working as a tradesman, not only do you have to worry about business risks but there are personal risks too.
If you are operating as a sole proprietor, you could become personally responsible if a claim were to occur for an accident. This could result in losing your business and your personal assets.
With Public Liability insurance you rest easy knowing that you have protection in place for things like:
- Accidents on work sites: if you were to accidentally demolish the wrong wall at a client’s home during renovations
- Accidental damage to someone’s property: something as simple as accidentally knocking over and breaking a customer’s antique vase while installing a light fitting in their house
- Causing accidental injury to someone: if your business activities cause injury to a member of the public, suppliers, or customers, like accidentally leaving a loose electrical lead around causing someone to trip and injure themselves
Other types of insurance
Portable Equipment
One of the biggest investments you make in your tradie business is the purchase of your tools, and over the years your collection of drills, hammers grows. So when life throws a spanner in the works, make sure you protect your valuable business assets with Portable Equipment cover.
This type of insurance provides protection for your tools and equipment regardless if you’re working on a site, have your tools in storage or in transit.
If your tools were stolen or damaged, would you be able to afford to replace all of them without putting a dent into your savings and cancelling the jobs you’re working on?
Personal Accident and Illness
Being physically fit is a big part of your profession as a tradesman. From working on renovations to large scale construction sites, you’re always on the go.
If you were to injure yourself or were unable to work due to falling ill, how would you be able to keep paying the bills and keep your business running?
Personal Accident and Illness insurance can pay up to 85% of your income up to $3,000 per week if you are unable to work temporarily due to accidental injury or illness. This means you can focus on getting well without the worry of how you’re going to keep up with your living expenses.
What Could Go Wrong for a Tradesman Business?
It would be nice to think that nothing could ever go wrong and that your business was indestructible. The reality is, things can and do wrong for tradesmen, and taking the time to think about what could wrong before it happens could save your business in the long run.
Here are some of the common risk scenarios tradesmen are faced on every day:
Accidentally causing damage to someone else’s property
You’re working on bathroom renovations at a customer’s house when you suddenly notice a major water leak. Before you get a chance to turn the water main off the leak has caused damage to the contents of surrounding cabinets, the walls of the bathroom. You are now responsible for repairing and replacing this damaged property.
Tools are stolen
After working all day you, you stop by the shops on the way home to pick up a few supplies. As usual, your tools are secured within the vehicle. After visiting the shops you return to notice the worst has happened. Your vehicle has been broken into and your tools are gone.
This now means you need to cancel any jobs you’re working on and find the spare change to buy replacement tools.
Suffering from illness or injury
Experiencing a serious injury or illness can happen anywhere at any time, and without a warning. Spraining your ankle while playing a backyard game of rugby on the weekend could be enough to see you sitting on the sidelines until you are well enough to recover and pick up tools.
These are some of the risks tradesmen are exposed to on a regular basis:
- Injuries from using power tools and machinery
- Accidents involving hazardous or toxic materials such as cleaning chemicals
- Injuries from operating heavy equipment and lifting objects
Questions to Ask Yourself When Buying Tradesman Insurance
These are some of the things to keep in mind when selecting your tradesman insurance:
- Is there a required level of Public Liability coverage you need to have for a contract or worksite?
- Are you required by legislation to have Public Liability coverage?
- Add up how much your tools are worth, do you have coverage for them for theft or damage?
- If you were to injure yourself or fall seriously ill, could you afford to take the time off work to recover?
Getting the Right Public Liability Insurance for a Tradesman
At Public Liability Australia we want to make arranging your tradesman insurance easy and hassle-free. We understand that there is no such thing as a ‘one size fits all’ solution when it comes to insurance, so you have the freedom to customise what type of insurance your business needs.
Multiple competitive quotes from Australia’s leading insurers are only a few clicks or a phone call away. Select the policy to suit your business and be covered in minutes.
