Construction is one of the most dangerous industries in Australia, ranking third for the highest total of work-related injuries, illnesses and deaths. According to Safe Work Australia, tradies contribute 58 per cent of serious claims for workers’ compensation.
These figures should be enough to demonstrate the importance of considering tradies insurance that may be critical to the profession. The insurance coverage protects you financially against liability claims, so you won’t have to pay for them out of pocket.
Public Liability Insurance
If you’re a contractor employing tradies, you should highly consider public liability insurance. Public Liability insurance protects you against property damage or personal injury claims made by a third party. It will foot the costs for the replacement, repair or damages to compensate the person who made the claim. Without public liability insurance, you would have to pay them out of pocket.
Public liability insurance only covers claims made by external parties; it doesn’t cover claims made by your employees. This is where workers’ compensation insurance comes into play.
Workers’ Compensation Insurance
Also called ‘employer liability insurance’, workers’ compensation insurance protects you against claims made by your employees. It provides benefits for tradies who get injured or sick from a work-related cause, covering the cost of their immediate care and return-to-work rehabilitation.
Workers’ compensation insurance includes missed wage replacement, disability benefits and even death benefits.
If you’re an independent contractor, you may not be eligible for workers’ compensation, depending on which state you’re operating in. In this case, you’ll need to consider other options like income protection insurance or accident and illness insurance.
Accident & Illness Insurance
Accident & Illness insurance is designed for self-employed tradies who aren’t covered by state-based workers’ compensation schemes. It pays you a cash amount if you become disabled due to a work-related injury or illness.
With income protection insurance, you’ll be able to recover some of your monthly wage even if you can’t work.
Accident & Illness insurance helps you stay on top of your bills and fund your recovery until you get back on your feet.
Tools insurance is another policy worth considering since tool theft is a persisting problem in the industry. Given that tradies heavily rely on their equipment for the bulk of their work, having tools insurance can help protect your livelihood.
Tools insurance protects you from theft from locked vehicles, storage boxes and premises. It also covers damage due to vandalism, floods, fire or vehicular accidents. Some insurers pay out a lump sum commensurate to the tool you lost, while others require you to look for a replacement that’s within a certain price range.
Unfortunately, tools insurance doesn’t cover damage caused by wear or overuse.
The bottom line is that tradies shouldn’t operate without considering their insurance needs. Doing so may open you up to liability claims and risks that could lead to tremendous losses. But it’s not enough to get just any kind of policy. You need to find and review insurance schemes that provide all the protection you need as a tradie or contractor, guarding you against all sorts of risks.
Business Protection with Builders’ Insurance
IMAR provides reliable coverage for tradies as well as builders and small businesses. We offer insurance policies to fully insure your livelihood from potential losses, including tools insurance and income protection.
Contact us today to assess your risks and we’ll see what kind of insurance policies may be beneficial to help you operate safely.
To the extent that any material on this page may be considered advice, it does not take into account your objectives, needs or financial situation. You should consider whether the advice is appropriate for you and review any relevant Product Disclosure Statement and policy wording before taking out an insurance