Being a tradie is all about the hard yakka. The last thing you need is to have to deal with other distractions – like stolen tools, time off work due to injury, or (touch wood) a lawsuit.
We know you’re good at your job. But hey, it happens.
This is where insurance comes in. A good insurance policy makes sure you’re covered if any (or if you’re unlucky, all) of these things happen to you. It’s a surefire way to avoid financial stress and focus solely on the work.
But not all insurance is made equal, and different policies cover different things – it’s not a one-size-fits-all deal. What you ultimately opt for will depend on your business needs, and how you operate.
So to help you make an informed decision, here’s a quick rundown on the types of insurance tradies might need to think about.
Better safe than sorry!
- Public Liability insurance
- Personal Accident insurance
- Tools and Equipment insurance
- Commercial Vehicle insurance
- Other types of insurance you might need
Public Liability insurance
Public Liability insurance covers any negative impacts your work might have on your client, their property, or the general public.
For example, let’s say you’re a builder, and one of your subcontractors fails to properly secure a crossbeam on your building site. If that beam accidentally falls and injures your client, or another member of the public, your costs are covered should they decide to sue.
Public Liability insurance is provided in cover levels of $500k, $1m, $2m, $5m etc, and the level of cover you require will determine the cost of the policy. If there’s a chance your work will result in some serious accidental damage, a higher level of cover might be a good idea.
Personal Accident insurance
Unfortunately, the stats on workplace injury are pretty bleak: tradies and those in similar make up 50% of work-related serious injury claims every year.
This is where Personal Accident insurance can take the heat off your business, and give you the space you need to recover. A good Personal Accident insurance policy can cover an agreed upon percentage of your income, as well as the cost of medical treatment related to your accident or injury (if not covered by Medicare).
Some insurers include illness as well as injury in their Personal Accident policy, meaning you don’t have to take out a separate Income Protection policy for if you get sick.
Make sure you’re clear on what you need, and what your policy of choice covers, before you sign the dotted line.
Tools and Equipment insurance
Where would anyone be without their tools of the trade? Broke, probably.
Which is why it’s always devastating when tools are stolen from a home, site, or even a ute. That’s why Tools and Equipment insurance is so important – no matter the current state of your cash flow, you know you’ll always be able to afford to replace your gear.
Once again, different policies cover different things. Some may need an itemised list of all the tools and equipment you may need to claim on. Many have rules around proving ownership, as well as requirements around the theft – for example, theft of a tool box from a ute that was broken into may be covered, while a tool box stolen for a tray might not.
(If you’re worried about the latter, you can opt for an “open air” policy, but this may be more expensive.)
Basically, you know your needs best. You’ll need to decide on the type and level of protection that’s right for you.
Commercial Vehicle insurance
If your business vehicle is stolen, or meets with an accident, or is set on fire (anything is possible!), you may need a good vehicle insurance policy to compensate.
This is probably one of the most common types of insurance that exists, and you should be able to find the right level of cover for you pretty easily.
Do your own research, or go through a broker – but don’t skimp on what you might one day need to stay in business!
Other types of insurance
While the above covers the bulk of what you need, there are a few other bits and bobs you might want to consider. So here’s the quickfire round:
Personal Indemnity Insurance
If you give a client advice in a business capacity, and something goes wrong during the follow through, you might be held liable. Personal Indemnity insurance covers the court costs in this situation. It’s not necessary for everyone, but definitely check it out if it’s relevant to your work.
Income Protection Insurance
If you have to stop working for a reason not covered by Personal Accident insurance, Income Protection insurance has your back. Make sure you understand what you’re covered for though – you don’t want to stop working and then be caught short.
Private Health Insurance
It can help with the costs of treatment at a private hospital, or cover things not covered by Medicare.
Workers Compensation Insurance
If you employ staff or subcontractors, you’re actually required by law to take out a Workers Compensation policy in most states (subject to thresholds, depending on the state). It’s like Personal Accident insurance, but for your employees/subcontractors.
Gotta take care of your own!
Where Hnry comes into all this
So we actually can’t directly help you with insurance – but our friends at Bizcover can. They specialise in sole trader insurance, and can help you find the policies that fit your needs best.
But what we do is sort all your tax stuff for you, which is another distraction you can live without.
For just 1% + GST of your self-employed income, capped at $1,500 a year, Hnry will calculate and pay all your taxes, levies and whatnot for you, including:
We can also handle things like:
- Invoice chasing (politely of course. Get paid 8 days faster than the industry average!)
- Scheduling invoices
- Raising expenses
- Reviewing expensing
And we automatically complete and lodge your tax returns for you.Basically, we become your accountant. And you’ll never have to think about tax again!