When it comes to setting up your business, you will need to be across the different insurance that you will require as a tradesperson. 

Keeping these insurances in check is so important. 

Because when an accident happens, your income and protection will be out of your control.

So before you begin working for yourself, ensure that you have the following insurances set up.

 

1 – Public liability insurance

Public liability is set up to protect your business against claims that could occur after accidents or injuries. 

It also includes accidental damage to property.

It could be something as simple as using a piece of faulty equipment that has caused an accident.

From a business owner’s perspective, it is your responsibility to cover customers or those who are involved with your business if an accident occurs. 

• If you’re working with clients in public spaces or areas owned by others. 
• If you have customers visiting your premises 
• Or you manufacture products.

It is essential to have public liability insurance.

2 – Insurance on your tools

Your tools are your livelihood. 

So if for some reason they were to be stolen or damaged, you wouldn’t be able to continue working without them.

When organising insurance for your tools, check what sort of cover is offered. 

For example, some insurance options will cover theft for tools left in the open air – for instance, while you are using them on the job site. 

While other insurance options will only include them if they’re locked up.

Getting insurance on your tools means that, should something happen to them, they’re covered.

It may come as a surprise to you, but it’s common for tools to be stolen from locked up toolboxes. 

Even when they’re safely secured in a locked up ute tray.

 

3 – Income protection

Income protection is important because when an accident happens, and you can’t work, there will be no way for you to recuperate this income. 

However, if you have income protection in place, you will be able to cope more effectively.

Be sure to check your policy and the different types of income protection on offer. 

Income protection should give you flexibility when it comes to claiming. 

For example, proper income protection will provide you with the option to work up to 10 hours per month and still recieve income protection. 

Day 1 accident cover also back pays you from the date that you had the injury.

Check policy time frames to learn about when you will be able to start receiving income protection. 

Some require you to be away from work for a minimum of 30 days before you can begin earning income protection, while others are just three days.

 

4 – Life insurance

Life insurance will provide you with a sum of money when diagnosed with an illness or after you die. 

The different insurance options for this between tradespeople are pretty minor.

However, life insurance is essential for your family, who is reliant on your income to set up, should the worst happen.

 

5 – Total permanent disability (TPD) insurance

When sorting out your TPD insurance, it is essential to understand that the definition chosen makes a difference between the cover that you recieve.

For example, if you want coverage that is “any occupation” or “own occupation” – the claim will vary accordingly.

So what’s the difference?

Any occupation means that the cover will be paid if you are unable to do any type of work due to injury or illness. 

However own occupation is if you are unable to return to your usual occupation.

This choice of words in your policy can be a massive part of your claim, so make sure you learn about the difference and how it will apply to you.

 

 

6 – Trauma Insurance

Trauma insurance breaks down specific, critical illness, and only covers these illnesses as listed. 

So when choosing which one to go with, opt for the one with the broadest range of illnesses. 

Trauma insurance will cover a tradesperson if a significant illness is diagnosed; this includes cancer, stroke or heart attack.

In conclusion…

When it comes to insurance, of course, it is totally up to you as an individual/business owner how you will move forward. 

Take into account the different business insurance options, as well as personal insurance and how they apply to you.

Note: Bizmatrix takes no responsibility for insurance recommendations. It is up to the individual to organise this.