Construction is one of the most dangerous industries in Australia, ranking third for the highest total of work-related injuries, illnesses and deaths. According to Safe Work Australia, tradies contribute 58 per cent of serious claims for workers’ compensation.
These figures demonstrate the importance of considering tradies insurance, which may be critical to your profession and your business. Insurance coverage protects you financially against a wide range of consequences which could arise from a workplace accident, so you won’t have to pay for them out of pocket. Below we have detailed some policies, and why all tradies should strongly consider them.
Public Liability Insurance
If you’re a tradie, you should highly consider public liability insurance. Public liability insurance protects you against property damage or personal injury claims made by a third party. It will cover the costs for the replacement, repair or damages to compensate the person who made the claim. Without public liability insurance, you would have to pay them out of pocket.
Public liability insurance only covers claims made by external parties; it doesn’t cover claims made by your employees. This is where workers’ compensation insurance comes into play.
Worker’s Compensation Insurance
Workers’ compensation insurance protects you against claims made by your employees, and is mandatory in Australia if you employ staff. It provides benefits for tradies who get injured or sick from a work-related cause, covering the cost of their immediate care and return-to-work rehabilitation.
Workers’ compensation insurance includes missed wage replacement, disability benefits and even death benefits.
If you’re an independent contractor, you may not be eligible for workers’ compensation, depending on which state you’re operating in. In this case, you’ll need to consider other options like income protection insurance or accident and illness insurance.
Sickness & Accident Insurance
Sickness and accident insurance is designed for self-employed tradies who aren’t covered by state-based workers’ compensation schemes. It pays you a cash amount if you become unable to work due to an injury or illness, either on site or on the footy oval*. Essentially, it helps you stay on top of your bills and fund your recovery until you get back on your feet.
If the optional Illness benefit is selected, you can be covered for illness and disease that prevents you from working for a period of time. Limitations do apply, including an exclusion on pre-existing conditions.
*Up to the maximum benefit period shown on the Policy Schedule, less excluded period of claim. Conditions apply, refer to Product Disclosure Statement and Policy Schedule.
^It’s important to note that the IMAR Personal Accident & Illness cover is not Income Protection – Income Protection cover has options for a longer benefit period and covers more insurable events. It is only available from a life insurance provider and protects you if you’re unable to work for a specified period due to almost any illness or injury. Typically a higher premium applies for Income Protection due to the additional coverage. If you’re interested, this cover is available through Gallagher Benefit Services, who can advise you on whether this insurance is right for you.
Tool Insurance
Tools insurance is another policy worth considering since tool theft is a persisting problem in the industry. Given that tradies heavily rely on their equipment for the bulk of their work, having tools insurance can help protect your livelihood.
Tools insurance protects you from theft from locked vehicles, boxes bolted to vehicles and premises. It also covers damage due to vandalism, floods, fire or vehicular accidents, and provides a cover for your tools.
There are important limitations and conditions on cover, particularly where tools are stored and how they are secured; including a deprecation factor on insured values. Please refer to Product Disclosure Statement.
Business Protection with Builder’s Insurance
imar provides reliable insurance coverage for tradies as well as builders and small businesses. We offer insurance policies to insure your livelihood from potential losses, including tools insurance and income protection.
Summary
The bottom line is that tradies shouldn’t operate without considering their insurance needs. Doing so may open you up to liability claims and risks that could lead to tremendous losses. But it’s not enough to get just any kind of policy. You need to find and review insurance schemes that provide all the protection you need as a tradie or contractor, guarding you against all sorts of risks. If you’re not 100% sure, chat to one of our experienced imar tradie brokers to get a detailed quote for free.
Let’s talk!
Your time is precious, so we make it as easy as possible for you in 3 easy ways:
- Call 1300 540 156 to speak to our dedicated tradie broker team
- Fill out our online Contact Our Experts form
- Go online and fill out the Quote form
Disclaimer:
You should consider if the insurance is suitable for you and read the Product Disclosure Statement (PDS), Financial Services Guide (FSG) and policy wording before making a decision to acquire insurance. Please ask us for more details before we provide you with our services. Our FSG is available on our website.
To the extent that any material in this document may be considered advice, it does not take into account your objectives, needs or financial situation, and is considered general in nature only. You should seek legal or other professional advice before acting or relying on any of the Content. All insurance policies contain exclusions of cover, and no claim is guaranteed. Refer to the Policy Documents.
It is important to understand, there are limitations to all insurances and any claims are considered under the terms and conditions of the policy, including additional options you may select. Before, and upon acquiring any insurance, you should read all policy documents.
