So you’ve started a small business as a tradie, it’s important to make sure you’ve got the right insurances in place to protect your business and your reputation. The first basic rule of insurance as a small business owner is to secure a quality public liability policy for your business.
Why do small businesses need public liability insurance?
As a trades’ business owner, you work in hazardous and risky situations every day. It’s the nature of your job. You will have certain safety standards and practices in place to get the job done, but when accidents happen (and they do), if you’re deemed to be at fault you’ll be liable for the costs. If someone is injured due to your work practices, you could be facing some pretty hefty medical costs and you’ll also be liable for any associated sick leave they might need to take off for recovery. If your actions on a work site result in damage to someone’s property – it’s your business that will have to foot the bill for repairs. As a small business owner, this is not an expense your business can sustain. Because of this, public liability insurance is not only a sensible choice for small business owners, it may be a requirement depending on the trade you work in and the state you live in.
Your public liability insurance policy will cover you for third party injury and damage to third party property whilst on the job. The cost of your public liability will depend on a few factors including your annual revenue, the assessed risk of your business operations and the number of staff you employ.
Other insurances to consider
Workers’ compensation is a requirement for all businesses with employees throughout Australia. So unless you’re a one-man-band, this is a must. If an employee is injured on the job, your workers’ compensation policy will cover the costs of their medical treatment and associated sick leave. Check out the regulations for workers’ compensation in your state or territory to ensure you’re business and your workers are adequately covered.
Tools and property insurance
For small business owners, especially the sole traders, tools and property insurance is a must. This covers you for accidental damage, loss and theft of your tools, supplies and equipment. When you think about all the tools you have, if you needed to replace even one of them suddenly, you’d be shelling out quite a bit of money. Tools and property insurance can get you back to work without the hassle.
Personal accident and injury insurance
As the business owner, you’re not covered by your workers’ compensation policy; that is only for the workers you employ, so you might want to consider a personal accident and injury policy. This covers you for injuries sustained both on and off the job as well as insured illnesses that take you out of the workforce for a few weeks or more.
To ensure your small business has the right insurances, contact the trade insurance specialists All Trades Cover on 1300 826 850 or get a quick quote online today.