An Insurance guide for tradies
We understand that being the only one who is running your business with a million things to do, worrying about your insurance just adds on to your daily hustle.
We want to help you with a useful guide below on some of the insurance products for YOU.
1. Public Liability Insurance
No matter how good your handy work is, if something goes amiss with work done you could find yourself stitched up in a claim.
Public Liability Insurance covers you if a breach or carelessness/ negligence in your work results in personal injury or property damage to a third party.
Clients may also request proof of this insurance before you begin any work for them, and it is one of the most essential insurances a tradesmen should have.
So how much public liability insurance is the right amount?
The minimum amount of cover is $5 million but it really depends on the contracts you are accepting.
Some contracts may have a minimum requirement of $10m, some $20m and some no set required amount.
2. Portable Property or Tools of Trade Insurance
Tool insurance can cover the costs if your tools are stolen (and it happens all the time) and you need to replace them.
With almost all insurers you must purchase either Public Liability Insurance or Motor Vehicle Insurance to add General Property Insurance
You will be covered for loss of tools due to:
- Fire
- Storm
- Damage in a motor accident
- Theft of tools
3. Personal Accident Insurance
Being your own boss can bring a strain on the business if you are not capable to work due to an illness or injury.
Sole traders cannot cover themselves as “employees” for Workers Compensation Insurance, unless you can be regarded as a working director of a Proprietary Limited (Pty Ltd) Company
Personal Accident Insurance can help cover some of your lost earnings while you are getting back on your feet.
If you feel confused, please give us a call and we will simply recommend the products you require for your trades business.
4. Motor Vehicle Insurance
If you have any business vehicles attached to your trade and always on the road, you need to consider motor vehicle insurance that covers your vehicles while they are being used for work.
It will cover for accidental damage and theft.
Things can happen that are outside your control, and there may be other insurances in addition to the above such as Professional Indemnity that you may require so always pursue assistance from an experienced broker and protect yourself and your business.
