People working in the field are more exposed to potential risks and other unfavourable circumstances. Unforeseen events like accidents, injuries and death can happen within a blink of an eye.
As a Tradie who desires to explore and brave the trade industry, it is necessary to invest in insurance. Both your profession and business may suffer if you fail to have such requirements.
Before you make a deal with an insurance broker, it is highly advisable to consult him first to know the terms and conditions. That way you can understand the different types of insurance that help secure your business and safeguard your finances.
It provides financial support in the case of serious injury or illness.
Income protection is one of the most prominent life insurances a Tradie should secure before taking up any work assignment. This is particularly useful even when you are outside of work. If you happen to hurt your back at a time of leisure activity, you can expect a monthly wage to use for regular bills or expenses.
Workers’ compensation is different from income protection plans. For instance, if you are employed by a company and have an accident related to your job, your employer is responsible for your salary and medical expenses until you can return to work.
Since trade jobs often involve travelling and working outside, protecting your income can help you handle your financial obligations and until you recover. When choosing the best policy that suits your needs and budget, take time to check the Product Disclosure Statement (PDS) to make the right choice.
Investing in other types like Total & Permanent Disability (TPD) insurance and trauma insurance is also advisable to consider.
It protects your business from bankruptcy.
Insurance providers prepare and offer different plans for business owners. One of which is business expenses insurance. This type is the counterpart of the income protection plan. The former caters to the need of people owning a business as the name implies.
You can take advantage of the policy’s flexibility if you are a business owner or planning to start a business in the future. It can help you with monthly expenses such as electricity and utility bills, repairs and maintenance, staff salaries and leasing expenses. If in case you suffer from an illness and temporary absence, it also provides special benefits including locum cover.
Other types to consider are professional indemnity and public liability insurance. Professional indemnity insurance secures your assets and reputation as a consultant. It takes effect if, for instance, you are accused of providing wrong advice to a client. Legal actions can expose you to significant financial costs without this insurance. Clarifying this with an insurance broker gives you a better understanding to match your needs.
It prevents work delays due to lost or defective tools and equipment.
Tool insurance focuses on covering the cost of any stolen or damaged tools. Your work productivity and ability to earn an income could suffer without the right protection for your equipment. Not only does it offer convenience in terms of money, but it also helps you to rapidly return for work.
Using your savings to repair or replace a faulty tool can be financially onerous. Investing in this is highly recommended along with public liability insurance. You have the freedom to choose if you prefer to cover your tools for risk.
Choosing a suitable insurance plan or bundle will depend on what business you operate and your financial status.
Public Liability Insurance
Not all businesses rely on having insurance. If you are engaged in a construction project or other related work, it can pose a threat to people near the job site. This puts them at risk when a third party incurs loss or injury.
Tradies with no public liability insurance are exposed to significant losses especially when your work causes a person to get injured. Unintentional acts like damaging a portion of someone’s property or any furniture that’s beyond your scope can occur and have significant costs associated.
Whether you are new to managing a business or have established your own for years, including this on your list of priorities may save you a lot of time, money and legal proceedings.
Securing public liability insurance is not mandatory for all businesses. The requirement will still depend on each state and government authorities. However, the absence of adequate insurance makes owners personally liable for all costs.
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