Trades businesses carry risks that may overlap with other types of businesses, but that are also unique to the industry. On top of that, the needs of one trades businesses within an industry may not be identical to that of another!

This is why business insurance policies are not one-size-fits-all, but should instead be customised to match the needs of the individual business in any industry.

But before examining what insurance cover tradies need, let’s first look at some of the typical risks they face.

Typical risks trades business face

1. Risks to property

This includes lost, damaged or stolen tools – which can prove to be very expensive if you don’t have insurance cover for these items!

Another one is portable electronic equipment – especially if you take it out on the road with you. This makes it more likely to be damaged or stolen than if it is kept locked up in the office.

Other property risks include damage to or theft of machinery, premises break-ins, and theft or loss of money in transit.

2. Risks to physical safety

Tradies face some of the highest levels of workplace injury and death in Australia, particularly in construction. This includes falls from heights, electrocution, collisions with vehicles, being struck by moving or falling objects, and musculoskeletal injuries from manual handling tasks. These types of events can affect both the business owner and their workers.

3. Liability risks

Tradies are vulnerable to claims of harm, injury or property damage by third-parties. For example, a customer could claim their property was damaged due to the neglect of a trades service, and bring a lawsuit for damages. This could prove to be very expensive for a trades business.

4. General business risks

A trades business could also face many of the same risks as other types of businesses – such as fire or flood, business interruption due to a disaster, internal theft, employee dishonesty, cyber-attacks and vehicle accidents.

Insurance cover for tradie risks

While it’s up to a trades business owner to reduce their risks as much as possible, sometimes things can go wrong even with the best risk management in place!

This is where tradie insurance comes in, as it is designed to provide financial compensation in an accepted claim for monetary losses.

Depending on the policy it can include cover for premises, vehicles, tools and equipment, liability, perils, business interruption, personal accidents and cyber-crime.

As well as commercial insurance, trades businesses with employees should also secure workers’ compensation insurance – compulsory no-fault cover in case of workplace accidents or injuries. More information on workers’ comp cover is available through the workers compensation authority in each state and territory.