If there’s one important rule to recall when narrowing down your prospects, it is to hire a tradie with insurance. Without it, the cost could double up and leave you financially burdened.
It’s always best to look for a tradie with insurance to help safeguard your finances and secure theirs too.
When finding a tradie for any repair or renovation jobs, check for credentials and sample works along with a proof of insurance to secure both parties from potential losses.
What types of insurance a tradie could have?
Check any of these insurance packages as you clarify some questions with your prospective tradie. Does he have at least two of the following policies?
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- Income Protection Insurance (IPI) compensates the tradie in the event of injury or temporary illness caused by accidents on-site.
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- Total & Permanent Disability (TPD) provides financial support to the tradie with permanent disability through lump sum benefits (or one-time payment).
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- Public liability insurance covers the cost for any third-party injuries or damages. This type is the most common insurance package for registered businesses.
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- Trauma insurance cover or critical illness insurance ensures to provide immediate financial assistance when a tradie suffers from heart attack or any illness that requires intensive care.
- Professional indemnity insurance protects both the tradie’s assets and professional reputation from negative claims.
Note: The requirements for businesses vary depending on the state and its regulations.
Truth be told, not only can the clients benefit from hiring insured tradies. Tradesmen themselves can experience the remarkable effect of holding any type of insurance. Not all tradies are working under a business so they have to secure personal insurance like the income protection policy.
In case of accidents, the insurance holder can receive monthly income (range will depend on the policy or amount of contribution) while he is unable to work.
Tool insurance is also a must-have for tradies. It helps to protect themselves from spending a bunch from tool repairs or replacement in the event of damage.
As you hire a tradie within your local area or from another location, make sure to ask for a certificate of insurance to validate the claim. Doing so protects you from running the risk of allowing someone with no insurance to work around your house.
What if an accident occurs and the tradie has no insurance?
You would be held accountable for property damage.
With possibilities of mishaps, problems such as cracks, dents or wreckage can happen anytime. Before you hire a tradie to do the fixing or installation, verify the insurance details.
You may confirm it during the consultation. Failure to do so can unexpectedly put your finances at stake.
In the blink of an eye, you get to shoulder the cost for any form of damage committed by the tradie during the work. You wouldn’t want that, do you?
You would suffer work delays.
Paying the price for something beyond your control can be unacceptable.
More so when the actual job is postponed due to intense dealings with the tradie or a third party’s involvement.
When this happens, you’re more likely to hire another tradie to complete the uncompleted work if need be. That’s more of a hassle, is it?
Never Assume
It’s without a doubt that professional tradies can work well with less mistakes. So it makes financial sense not to verify any documents concerning their personal or business insurance.
However, not all sparkies or dunny divers have insurance, and even the most experienced tradies that you know can get into accidents.
Sure, a tradie who can accomplish simple jobs like unclogging the drain or cleaning up the oven can get away without holding any certificates of insurance.
But when the job requirement involves climbing up a ladder to do rewiring, fixing a broken pipeline, or insulating the home, don’t think twice.
Although it’s not a prerequisite to hire a tradie with insurance, protecting your property and finances should be your top concern.
So what now? Would you risk your resources from entrusting a tradie with no insurance or be willing to spend a bit higher just to get the most qualified, insured tradesman?
Featured Photo Courtesy of stevepb via Pixabay
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