Trade insurance policies have changed a lot over the years, and tradies are now in a position to take advantage of many more financial protections for their businesses.
But many sole traders or small business owners don’t fully understand what types of financial risks they could be exposed to that might cause some crippling losses.
We encounter it on a regular basis with our new clients who are surprised about these risk exposures because they were under the false belief that their existing policy had them fully covered.
Let me give you some insights.
What Is Trade Insurance?
Trade insurance products are designed to provide a package of protections for the unique circumstances of self-employed tradies.
Whether you work on your own or have a few employees, your daily work leaves you constantly exposed to accidents or injuries that could end up costing your business a lot of money.
Trade insurance typically covers 4 main areas:
1 – Public Liability
No matter how careful you are, accidents can still happen due to the work that you do. This could happen due to a mistake or failure of a product that you installed, and you are exposed to financial losses from claims on property or personal damages.
2 – Commercial Vehicles
Rather than having multiple separate policies, it’s possible to bundle business insurance cover to include your commercial vehicle and trailer.
3 – Personal Injuries
This is important for any self-employed person, as it would cover you for loss of income should you end up out of work due to an injury, accident, or illness. These are situations that could quickly see you get into financial difficulty.
4 – Tools And Equipment
Loss and accidental damage of tools and important equipment for your job are a common problem that tradespeople have to deal with. By covering your critical tools under your business insurance, you’ll gain some added peace of mind that you’d be able to replace them in a worst-case situation.
What Risks Are Most Common?
We have encountered many different claims with our trade clients over the years. This has given us a unique insight into how to protect tradies so that their livelihood is not at risk because they don’t have the right insurance cover.
Here are three areas to pay close attention to.
1 – Tool Cover
Insurance for tools is going to be a must-have for the majority of tradespeople. But it becomes even more important if you need to leave some of your tools and machines on a job site or in your van.
Unfortunately, thieves know exactly what they need to look for to get the highest value tools, which in many cases can be in the thousands of dollars.
You need to make sure that your policy wording covers you for theft and damage to your equipment, whether it’s on a job site or on the back of your ute.
2 – Personal Accident Cover
Many tradies believe they are automatically covered for personal injuries and accidents because they took out a trade insurance policy. But accident cover is an optional extra on the majority of policies, so you have to make sure that you requested this at the time.
There can be quite a lot of common accident and injury situations, depending on the type of work you do. This policy cover would protect your income if you suffered an injury that prevented you from doing your job.
3 – Public Liability Cover
You should also make sure that your trades insurance covers you for public liability claims as well. These are by far the most common types of claims that you could be exposed to, no matter how experienced and careful you are on a job site.
A simple mistake or mis-judgment might cause damage to someone’s property that could cause thousands of dollars worth of repair and replacement costs.
We always advise clients to combine this into their business insurance rather than taking out a separate public liability insurance policy.
If you have any concerns that your current trades insurance doesn’t provide you with the right level of financial protection, then contact our team at Aspire Insurance today on 1300 886781.
We will fully assess your current policy and provide you with free advice on how to further protect your financial interests.
Partner With Aspire Insurance Brokers
We don’t just focus on giving our clients the best possible business insurance options, but also offer a service package that you won’t find with other insurance brokers.
If you encounter a claims situation due to theft, accident, or public liability, then you can end up going through a lot of worry and stress. That’s why we offer all our clients a 24/7 support service so that you can get the advice you need when you need it the most.
Policies Tailored To Your Requirements
We always carefully look at our clients’ business operations to fully understand what types of risks they are exposed to. This helps us to better tailor a trades insurance policy to cover all the possible risks along with the right valuations of your assets.
Annual Policy Review
We will provide you with a full policy review at each anniversary of your trades insurance. This could help you further protect your assets as your business grows and through new types of insurance products that become available.
You will always deal with a real person when you partner with Aspire Insurance. We don’t make you use automated systems where you could end up with a lack of adequate cover.
Contact Us Today
If you would like to take the opportunity for a full policy review and a no-obligation quote, then contact our business insurance team at Aspire Insurance on 1300 886 781.
We will fully analyse your business model and discuss all the physical assets that you may need to protect, to ensure you don’t end up exposed to serious financial losses.