If you work as a tradie, there are many different insurance options for you to choose. But how do you know which is the best insurance for you? In many cases, the cheapest insurance may not necessarily be the best.
If you work as a tradie, there are many different insurance options for you to choose. But how do you know which is the best insurance for you? In many cases, the cheapest insurance may not necessarily be the best.
Your insurance package needs to suit your needs and objectives, as well as taking into consideration practical matters like cost. It’s a good idea to familiarise yourself with the insurance options available for tradies so you can make an informed decision.
Public Liability Insurance
Public Liability Insurance is essential for tradies as it covers any damage that occurs to property or another person as a result of your work.
When choosing Public Liability Insurance, the various insurers are relatively similar with the standard features of their policies. However, you need to have a close look at the specific features and benefits of the policy because this is where you’ll see the most differences. You’ll find that some of the extras included in policies will suit your needs better than others.
Tool Insurance
Tool insurance is designed to cover you if you’re tools are lost and stolen. This is essential for tradies who rely on using tools as part of their work.
When looking for tool insurance, have a close look at the different policies to make sure the specific features suit your needs. For example, some policies won’t cover you if your tools are left out in the open. This is fine if you’re tools are secured at night but if they’re not, it’s best to find an insurer who will cover this.
Another example would be making sure that your policy covers theft. Remember that a more basic policy means that fewer circumstances are covered and you may be left out of pocket if something happens.
Income Protection
Income protection means you will be able to survive financially if you’re unable to work for any reason.
There can be big differences with income protection policies so it’s important to do your homework. A good policy will offer you flexibility when you claim and you will be able to get payments from your income protection even if you’re working a few hours a week. Other policies won’t provide payments if you’re doing work of any kind.
‘Day one accident cover’ is a good feature to have on your income protection because it means you’ll be given back pay from the first day that the accident happened. Also, some policies will need you to be away from work longer than others before they’ll pay your income protection claim.
Another feature to look for with income protection is ‘specified injury benefit’. This means that there is a fixed amount of money that is paid for certain injuries without any waiting periods. For example, if you break your arm, you may automatically receive two months’ worth of payments if you have specified injury benefit in place. An added bonus is that you don’t need to pay back the money if you go back to work sooner and will continue to be paid regular payments if you have to be off work longer.
We don’t offer income protection at Elliott Insurance Services but can recommend an appropriate service for you.
Life Insurance
When it comes to Life Insurance, there isn’t much difference between policies. Life Insurance means that there will be a large pay out in the event of your death. Most insurers will pay the money prior to death in the case of terminal illness.
Total and Permanent Disability (TPD) Insurance
TPD insurance will provide you with a lump sum if you’re injured or disabled and will be unable to return to work. The difference between TPD insurance and income protection is that TPD is paid in a lump sum, while income protection is paid monthly.
The biggest difference to look for when comparing TPD Insurance policies is that some policies cover ‘own occupation’ whilst others cover ‘any occupation’. With ‘any occupation’, the insurer will only pay if you’re unable to return to any form of work. With ‘own occupation’, the insurer will pay as long as you’re unable to return to your usual occupation.
For this reason, it’s best to look for ‘own occupation’ when comparing TPD Insurance policies.
Trauma Insurance
Trauma insurance covers tradies if you’re diagnosed with a critical illness such as cancer, stroke, heart attack or any other illness outlined in the policy. Trauma insurance will pay a one off lump sum in the case of a serious medical condition.
With trauma insurance, it’s best to choose a policy that covers the widest range of illnesses and conditions. Although it can be a stand-alone policy, it’s often a part of your comprehensive income protection, life insurance or TPD insurance
Finding the best insurance company
When choosing your insurance package, it’s best to find out who provides the best insurance for tradies. The main consideration will be who the most helpful is when it comes to claim time. A lot of insurance companies will be very helpful when you make initial enquiries but you also need to be sure that they will be equally as good when you need to claim.
You can find out who the best insurer is by researching yourself or going by word of mouth recommendations from other tradies. One of the best, and easiest, ways of finding the most appropriate insurer for you is speaking to an insurance broker. Your insurance broker has knowledge of a number of insurers and can quickly advise you who would be best for your specific circumstances.
Cost is also a big consideration when it comes to choosing an insurer and some insurers can offer great deals for certain trades. Even if you can’t afford multiple insurance policies, it’s best to have at least minimal cover so you are protected. Your insurance broker will take into consideration your specific needs and circumstances, including finances, and can help you choose the best insurance package at the best price.
How do I get more information?
At Elliott Insurance Brokers, we are happy to answer any questions you might have about tradie insurance or any other type of insurance. For a quote or more information, give us a call on 1300 635 315 and we would be more than happy to help.
