The nature of trades work makes it vulnerable to many types of risks and losses. These include theft of tools or electronic equipment, motor vehicle incidents, personal accidents and injuries at work, employee injuries, client property damage and liability claims.

Tradie businesses often operate on a relatively low profit margin, which doesn’t leave much of a buffer for financial losses. But this can mean that some tradies might choose to skimp on insurance in order to cut down on costs, which can be a big mistake. Being underinsured could prove to be not much better financially than having no insurance at all!

Another issue is the provision of relatively informal ‘handyman’ services, such as repairs or odd jobs for clients. These can be perfectly legitimate services. But you might think because you’re not operating a formal business or working fulltime that you don’t need insurance cover. It may also be the case that you just don’t think of it.

However, when you consider what could go wrong in a situation like this, it becomes quite clear that the financial protection of insurance is necessary! The types of things that could happen include damage to a clients’ property, work mistakes, theft of tools or equipment, personal injuries and more.

if you offer these services, you still need financial protection through the appropriate types and levels of insurance cover, even if you are not a full-time tradie operating a company.

So what does trades insurance cover?

Depending on the policy, trades insurance can cover the following:

• Public Liability – cover for third parties (the client for example), in case they hold you liable for personal injuries or damage to their property.
• Tools and Equipment – cover for the tools you use in providing your services. It may also cover things like mobile devices and laptops.
• Commercial Motor Vehicle – comprehensive cover for the vehicles you use in your daily work, such as cars, utes, trucks and trailers.
• Other insurance – such as cover for equipment breakdown, fire, personal accident and tax audits.

So, whether you operate a company with multiple employees, or you are a sole trader, or you do odd jobs for occasional clients, you should have the right insurance cover to match your risks! This helps ensure you are not under-insured, but also that you are not paying for insurance you don’t actually need.

The best way to make this happen is to discuss your business and your risks with a professional broker. Doing so not only ensures you get the right types and levels of insurance, but it also reduces the risk of being over-insured and potentially paying too much for your cover!