Tradesman Business Insurance
Business Insurance for Tradesmen*
If you work as a tradesman, tradie or subbie the nature of your everyday work presents a number of risks.
Wherever you are in Australia, as a self-employed, sole trader or contractor tradesman, its important you get suitable and affordable tradesman insurance to protect yourself and your business from potential claims that may arise from your work activities.
Tradesman liability insurance, trade risk insurance & tradesman tools insurance are important for any tradie.
What types of insurance does a self-employed tradesman need?*
- Public liability insurance– may protect tradies against claims from harm to other people or their property caused from your work activities ; work at site including unauthorized access, attractive nuisance, liability for sub-contractors, vicarious liability for sub-contractors.
- Product liability– may protect a tradesman when products you have supplied, repaired or manufactured cause harm, injure someone or cause property damage.
- General property insurance– may cover damage or loss to tradie’s business equipment such as tools, mobiles , computers , power equipment , or stock such as timber or frames.
- Business insurance pack– you may be able to combine public liability and other covers in a specially designed policy for a small trade business. Ask your SMART broker for details.
- Marine cargo– cover for tradies if you receive or send goods such as building materials via post or freight.
- Commercial motor– may cover any vehicle – car, van , light truck – that you own and use mainly for your trade business.
- Personal Accident and Sickness– to protect your personal income if you can’t work for an extended period.
Trying to work out what insurance your tradie business needs?
Sole trader or contractor tradesmen may choose public liability , often with or one two specific covers or a business pack.
Tradies that employee several staff or engage several sub-contractors typically face more risks that sole traders so may require public liability and a combination of the above covers.
We may be able to assist you determine what covers you need for your trade business risks.
What does tradesman insurance cover?*
Tradies may cover damage to a third parties person or property via tradies public liability insurance.
For example, if in the course of your trade works, you damage your clients’ furniture , destroy part of their home or building , cause some damage to a neighbouring property, or inflict personal harm on your client, visitors, neighbours or passers-by , public liability insurance may cover you. In the most serious cases, public liability insurance may cover you where your trade business activities result in the death of a person.
Tradies public liability insurance may also be able to assist with paying damages and/or legal fees for any claims made against you as a result of your trade business activities. There are many instances of claims made against tradies that are sole traders, contractors and small businesses who did not think they were at fault.
SMART coverage tip for the Sole trader tradie*. Sole traders tradies will at least require public liability. They may also wish to include in a business pack, business interruption and tools cover. Commercial motor, marine transport and personal accident may also be able to be protected.
SMART overage tip for trade based businesses responsible for insuring commercial property: consider at least public liability, and a business pack containing business interruption, product liability, general property, machinery breakdown, stock , glass, flood, money. Depending on your circumstances more or less cover may be required.
- Trying to work out what insurance your tradesman business needs?
- We may be able to assist.
- Wherever you are in Australia when you contact SMART business insurance , your friendly business insurance broker may be able to help answer your questions and find you suitable and affordable insurance for your trade business.
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What is tradesman insurance?*
Often when tradies talk about “tradesman or tradies insurance” they are referring to the core self-employed tradesman insurance of public liability.
It is strongly recommended that NO tradesman that is a sole trader, subcontractor or small business operator work without public liability.
As a tradie, without public liability insurance you may personally be responsible for any damage you cause to a third parties’ person or property.
In the most serious cases, public liability damages can result in millions of dollars of payments, which would bankrupt most tradies that are sole traders, contractors and many trade based small business owners.
A further reason for tradies referring to public liability insurance is that in many instances you will NOT be allowed access to a site or permitted to do a job without showing your public liability certificate of currency.
Tradies personal accident or income protection can sometimes also be required by subbie tradies to get on site; and hence, can also be referred to as tradies insurance.
What tradies need to know about insurance*
Tradies often working with volatile materials and hazardous chemicals that increase risks, such accident on site.
Property, vehicles, machines, tools and equipment being used on site are at risk and may be damaged due to accidents.
Risks a tradie small business owners are exposed to from their work activities include:
- Damage to someone else’s property from your trade work activities, which tradesmen .public liability insurance can help with
- Damage or loss/theft of your property such as tools
- Harm to yourself, an employee, sub contactor or someone else, slips and falls, inexperience , power equipment , sharp tools, materials, fire and liability hazards on site.
- Machinery and engineering. Tradies should consider cover for business interruption due to the risks of breakdown of machinery, tools and equipment; and the possibility of theft.
How much does tradies insurance cost?*
So, how much will tradies insurance cost you?
The core cover for self-employed tradies in Australia is public liability.
How much public liability insurance will cost for your business depends on a number of key factors, including:
- The nature and scope of your business
- Your business turnover and size
- Amount of insurance cover your business needs
For more information on how much public liability insurance may cost you as tradie please get in touch.
Please TALK to a friendly SMART broker who may be able to assist on 1300 542 573.
Why do tradies need to ensure their sub-contractors have their own public liability insurance?*
As a tradie, it is vital that your sub-contractors have their OWN public liability insurance so that they may be covered for any damage they cause to a third parties person or property while sub-contracting to you.
As a contractor they are responsible for any damages they cause.
As a tradie, your public liability policy covers your trade business.
Each business, including all sub-contractors require their own public liability insurance.
It is recommended that you obtain a current public liability certificate of currency from all sub-contractors that perform work for you.
Does workers compensation cover sole trader tradies?*
No. If you are a tradie that is also a sole trader workers compensation will NOT cover you.
Workers compensation provides cover for your employees.
As a tradie that is a sole trader you may require income protection or personal accident insurance.
*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a SMART business insurance broker on 1300 542 573 for more information.