Insurance For Tradies – The Hidden Cost Of Under-Insurance

Tradies be aware of the hidden cost of under-insurance

When it comes to the immediate cost of premiums, it can be tempting for tradies to under-insure or even choose not to insure at all as a way to save money.  This may save some money initially but in the long run can cost you serious money because you may be leaving yourself open to significant costs.  It’s also important to remember that your insurance premiums can impact on the price of insurance premiums in general.

Work together for cheaper insurance

Although it’s not something most of us consider, it’s important to know that insurance premiums can become cheaper with more people taking out insurance policies.  This is because insurers have a larger premium pool when more people take out cover and the savings can then be passed onto consumers.  If more people are better informed about the benefits of insurance and take out appropriate cover, the more benefits they’ll see in the cost of their premiums.  When it comes to under-insurance, if this becomes common across the board, not only will people find themselves struggling financially if something goes wrong but it can also have an effect on the price of premiums.

Tradies don’t get caught short

Less insurance might seem like a good idea initially – after all, it can save money on premiums which is good in the short term.  Some tradies may even choose to risk it and not have insurance in place at all.  However, this can seriously backfire when something goes wrong and you could find yourself facing huge losses if you’re unable to make a claim or liable for damages.

One type of cover that is often overlooked by tradies is Personal Accident and Illness Insurance.  It’s easy to think you’d never be in a situation where you’ll be unable to work but the unexpected can happen, especially with the hands on work tradies generally do.  If you’re suddenly unable to work due to injury or illness, Personal Accident and Illness Insurance will cover a portion of your income until you’re able to return to work or until your policy expires.  Don’t be left in a situation where you’re suddenly left without an income but don’t have the right cover in place.

Tool insurance is another area where it’s easy to under-insure.  Don’t underestimate how much it would cost to replace your tools and equipment if you were lost, damaged or stolen – you might be surprised at how expensive it is when you add up the replacement cost of each item.

With so many different insurers and insurance policies out there, it’s important for tradies to choose a company which understands their business.  All Trades Cover offer affordable and hassle free insurance to tradies and can help make sure you have the best insurance package in place to suit your specific needs.