A Guide to Insurance for Tradespeople The insurance for tradespeople is invaluable for the smooth running of a business whether small or large. Interestingly, most small businesses don’t usually think about tradesman insurance. According to the director of Safe Hand Insurance Mr. Phillip Carr, tradesmen have so much to worry about in the day-to-day activities that they shouldn’t have to worry about a public liability lawsuit. What is a Tradespeople Insurance? Insurance for tradespeople, otherwise called public liability insurance provides legal coverage for the damages to a business. This insurance is what will help you pay damages to the third parties in the event of any mistakes in the course of a business operation. Public liability insurance mainly covers two things: i. Damage that occurs on another party's property in the course of your business operation. ii. Injury of other people arising from your business operations. Nonetheless, no single product for insurance for tradespeople is universal. According to Mr. Phillip, there are tradesman insurance policies that also cover medical or legal expenses that may result from incidences related to the services you offer. A basic cover will however only cover the basic costs associated with each. Accidents are unpredictable yet they can be very costly especially where there are other parties involved. Amazingly, the law doesn’t insist on small businesses purchasing public liability cover. A smart tradesman will, however, see it wise to get covered, and besides, you stand a higher chance of being hired when a client knows that you have the public liability insurance certificate. The Main Elements of Insurance for Tradespeople There are four main basic elements of insurance for tradespeople: i. Areas Covered – Safe Hands Insurance, like with many other insurance companies, cover different sectors important to your business. For tradesmen working overseas, it’s also important to get an insurance cover that has an adequate passport. The laws in Australia make it challenging to get a comprehensive insurance for a tradesman with several areas of expertise, but working with an advisor can be a big help. ii. Amount Covered – This is a main area of concern and mostly depends on the worth of your business. If your company is limited, your cover will be cheaper compared to a business that has more interaction with the public. You can get quote comparisons from different companies providing insurance for tradespeople and if you still have a problem with making decisions, you can talk to an expert. iii. Excess coverage – Like other insurance products, you might be required to pay more if you need an extra form of coverage. How Do You Know If Insurance For Tradespeople Is Right For You? Most professionals and trade can benefit from public liability insurance. Companies that don’t need this type of insurance are those with no visitors to their premise, don’t work on
other people property and basically have no interaction with the public. This is a very small subset of the small and medium-sized business community. The annual turnover for the business can affect the payable premiums for insurance for tradespeople. The rule of thumb is that the bigger a company grows, the higher the payable premiums will get. There are other trade specific things like working in an environment that requires you to climb to dangerous heights will also affect you payable premiums.