Insurance For Self Employed Contractors

What is insurance for tradesmen?

Whether you’re a carpenter, a handyman or a plumber, things like accidentally injuring or damaging a third-parties property or getting your tools stolen are real risks that tradies face every day. Business insurance for tradesmen is designed to give your tradie business the protection it needs and peace of mind knowing that you have a safeguard in place when things don’t stick to the blueprint.

Why do Tradesmen need insurance?

The reality is as a tradie you are exposed to different kinds of risks, making it vital to look at the various types of business insurance options available and how they can protect your business. These are some examples of when business insurance can help:

• Protection against claims from third parties for accidental personal injury or damage to their property
• Protection for your tools of trade in case they are lost, stolen or damaged
• Certain types of business insurances may be required when taking on a contract
• Financial protection in the event you are faced with a claim

Don’t be a ‘hero’ and rock up to your next job without your insurance. With BizCover you can get multiple competitive quotes from some of Australia’s leading insurers online quicker than you can say “smoko” and grab yourself a feed from the tuck shop!

What insurances should tradesmen consider?

There are a few types of business insurances you may need to consider as a tradie. This is a snapshot of a few:

Public Liability Insurance

Public Liability insurance may be a requirement for tradies well before you step foot on site and is one of the important types of cover you may need to look at.

Even if you can talk your way out of a pile of rubble, you’re not going to be able to talk your way out of a Public Liability claim.  Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public is injured or sustains property damage as a result of your negligent business activities.

Consider the possible personal injury claims from trip hazards created by your work activities or the risk of property damage claims – what about if you dropped a hammer and cracked some tiles? What if you forgot to turn the power mains off and electrocuted someone?

A personal injury and property damage claim could have a huge impact on your business, not only financially, but also to your company’s reputation.

If you’re working as a contractor, you should also consider your contractual obligations to carry a minimum amount of Public Liability insurance.  You may also be required to hold Public Liability insurance if you are a member of a particular trade association.

What is typically included?

Compensation for:

• personal injury suffered by a third party (e.g. a customer, supplier or member of the public)
• damage to property owned by a third party due to your negligent business activities
• legal and defence costs associated with a covered claim

What is typically not covered?

• Injuries to your employees
• Damage to your own property
• Costs of rectifying faulty workmanship
• Professional negligence
• Contractual liability
• Events occurring before or after the policy period

Business Insurance

Your tools of trade and other business assets help you get the job done, so consider protecting them with coverage options like Portable Equipment* and Contents*

Insuring your tools, and your business against an instance when you have to down tools will ensure you still have a business,

Portable Equipment* – it’s likely you’ve accumulated a lot of tools over several years of work. If they were lost or stolen could you turn up to work the next morning and keep working? She’ll be apples with Portable Equipment cover – it insures items such as tools, business equipment or electronic items.

Professional Indemnity insurance

If you are an electrician, plumber of carpenter, sharing your tradie pearls of wisdom to your clients could lead to a potential claim if things don’t exactly go to plan and an accidental error occurs.

There’s no doubt you know your stuff when it comes to all things tradie, and if you are an electrician, plumber of carpenter  client’s may often seek out your advice on certain things. But did you know that if your advice causes them a financial loss you could be held responsible? That’s where Professional Indemnity insurance can provide a helping hand.

Professional Indemnity insurance covers you for losses claimed by a third party and defence costs due to alleged or actual negligence in your professional services or advice.

Personal Accident & Illness Insurance

Working as a tradie you rely on being physically fit to your business going and getting the job done, so if accident or illness were to strike you need to think of Plan B to help provide an income while you’re off recovering.

As a tradie you need to be fit and healthy to bring in the dough – but have you stopped to think about how you would keep on paying the bills if you were to injure yourself or fall ill and had to take time off work to recover? Accidents can happen anywhere, anytime. It could be at work or even on your own time; whether you are doing a bit of DIY around the house or playing a game of backyard footy on the weekend.

Personal Accident and Illness Insurance provides levels of cover for loss of income, permanent disablement and even death if you are unable to work as a result of an injury or illness.

Product Liability insurance

If your tradie business starts selling products, you may need Product Liability insurance to protect from claims from third parties for property damage or injury.

Tax Audit

If your tradie business is investigated by the ATO it can be a stressful and time-consuming event. It’s a hassle and worry that you don’t need hanging over your head, and that’s where Tax Audit insurance can make things less stressful.

If your accounts are audited by the ATO, you may need to hire external professionals, like an accountant to assist in the process. Tax Audit Insurance covers a business for specified costs in responding to an official tax audit.

An unwanted trade

A tradie working on a commercial building locked up his tools before leaving the worksite at the end of the day. The next morning when the site was opened his tools were nowhere to be seen. A double whammy – no tools and potentially a contractual penalty for delaying the work. The insured’s claim was dealt with quickly and he was able to replace his tools in time to avoid all penalties.

Why choose BizCover for your tradesmen insurance?

What kind of tradesmen need business insurance?

These are just some examples of the type of trades industry’s which need to consider business insurance to protect their business:

Tradesman insurance covers a broad range of modalities, including:

• Carpenters & Woodworkers
• Electricians
• Handymen
• Plumbers
• Concreters
• Garden & Lawn Maintenance
• Painters
• Bricklayers
• Lawn Mowing Service
• Tilers

How much does insurance cost for tradesmen?

Every tradie is different with their own unique features and types of potential risks. There isn’t a one-price fits all kind of tradie insurance policy, the pricing is dependent on your individual factors and circumstances.

These factors can be things like:

• Your claim history
• The type of business operations you perform
• Your annual turnover
• The number of staff
• Level of cover
• Claims history

To receive an accurate idea of how much business insurance will cost for your tradie business have a chat to our friendly team to get a quote.

Frequently Asked Questions