A tradesman-commonly referred to as a ‘tradie’ is a skilled professional whose expertise is both theoretical and practical in his/ her trade. Good examples are electricians and plumbers. Like any other professional, they have to safeguard their livelihood and property with an insurance policy package that best suits them. Some of the insurance policy packages often offered to tradie clients include:
- Public Liability
A tradie interacts with different people of the public who are external parties to their trade. The public liability policy comes in to help the tradie protect their business against external claims in the event of injuries, damage, or loss of the external party’s property and death of the third parties brought about by the activities of the tradie or their business. In addition to these, a public liability policy also covers the legal costs incurred due to lawsuits against the tradie.
However, it is important to note that the public liability policy does not cover the employees of the tradie as they are not considered external parties to the business. Some insurance companies allow the tradie to choose the insurance policy limit depending on the type of business or industry.
- Tool Insurance
The activities of a tradie are majorly manual and, more frequently than not, involve tools. Therefore, a tradesman needs to ensure that the loss or damage of tools does not interfere with their work. Tool insurance takes care of the cost of replacing tools and equipment in case of accidental loss, stolen, or damage caused by fires or natural calamities such as floods.
Tool insurance is especially essential for expensive equipment. It gives a tradesman an extra sense of security for potential risks involved and provides them with a way to reserve funds for replacement. This way, work should not have to be halted due to potential future risks. This insurance policy may be parts of another, such as business or property insurance.
- Property Insurance
There is no better way to protect your workspace rather than through a property insurance policy. Some risks damages caused by fires or weather-related such as smoke, wind, and effects of snow and ice are inevitable and unforeseen. Property insurance policies can be designed to cover the costs of repair and replacement of business premises and cover losses due to theft and vandalism.
Depending on the insurance company’s terms, the property insurance policy may cover the building and the valuable items inside the building. It is key to note that some companies do not cover loss or damages caused by mass destruction from catastrophes or events such as earthquakes, tsunamis, and floods. It all trickles down to the geographical location of the property and the most likely risks.
- Worker’s Compensation Insurance
A tradie is most likely to need this insurance policy due to the physical nature of their activities. It protects the employer from claims from an employee in the event of accidents at work that may result in physical injury, occupational diseases, or disabilities incurred from their employment activities.
Worker’s compensation insurance, also known as ‘worker’s conserves as medical insurance by covering the medical bills for treatment of injuries sustained directly from their employment. It also assures the employee of compensation for income in the case of disabilities sustained at work.
This insurance policy also covers the employer’s interest by protecting them against lawsuits from their employees when they get injured in the course of their employment.
- Vehicle Insurance
As the name suggests, a vehicle insurance policy is used to protect a private or commercial vehicle. Vehicle insurance may be offered to a tradie who owns a business vehicle. If they use their private vehicle instead, their personal vehicle insurance cover may work just as well. Vehicle insurance may be specified in other insurance policy forms; such as trailer insurance for businesses with trailers.
Vehicle insurance financially protects the vehicle from liabilities incurred in an accident or theft of the vehicle. This insurance policy may also be offered as part of comprehensive public liability insurance.
The above insurance policies can easily be bundled into one package and tailored into special tradies insurance packages depending on the nature of the tradie’s activities.
Eric Reyes is a passionate thought leader having been featured in 50 distinguished online and offline platforms. His passion and knowledge in Finance and Business made him a sought-after contributor providing valuable insights to his readers. You can find him reading a book and discussing current events in his spare time.