Learning More About Tradie Insurance Options
There are many different types of insurance options out there for tradies. The skill lays in sifting through what is going to be relevant to your business and what is not. It’s also important to know what is going to be mandatory for you as a tradie as what is optional. Here are the mandatory insurances you might need.
Public Liability Insurance for Tradies
You may have contractual obligations associated with Public Liability. If you are working on site or report to a building manager, make sure you double check your contract for any requirements. This might mean that you will need to obtain a minimum of $5 million in cover before stepping on site, or other amount as specified. You will be required in this case to present a certificate of currency in order to show you have this in place.
Public Liability Insurance is important for tradies as it protects you if a claim comes against you for damage to third party property or third party illness and injuries. Remember that your insurance will only cover for a maximum to the sum insured and for one event only. So if there are multiple parties injured or items damaged in one event, your whole sum must cover this. That’s why even if you have a minimum insurance requirement via contract, look at your own business circumstances to see if you need to bump it up. It’s very risky to be under-insured, especially working in high risk tradespeople jobs.
Workers Compensation Insurance for Tradies
The other necessary insurance when it comes to tradies is Workers Comp, or Work Cover (named depending on your state). This insurance covers your back pocket again if a claim for injury or illness comes against you. As the name suggests it covers your workers which can include apprentices, trainees, and employees. If they become sick or injured as a result of your direction then you can be found liable to pay for medical bills, loss of income, legal fees, and rehabilitation or specialist costs. As you can imagine, these can run into the thousands and sometimes millions of dollars.
These two types of insurance and vital to ensure that you meet particular regulations and law requirements. If you are unsure as to what applies to your business or in your state please contact your relevant industry body or your insurance broker to clarify.
Both Public Liability Insurance and Workers Compensation Insurance provide peace of mind to you and the people around you that if the worst does happen, they will be taken care of. It also protects your business from serious financial risk.