The number of insurance companies and polices out there for tradies can seem endless. Some of them are optional, whilst others are mandatory. Let’s find out here which ones you need before you can start doing your job.
Tradies Workers Compensation
If you employ anyone or have an apprentice or trainee under your wing, you will need to have Workers Compensation Insurance in place. This type of insurance will protect you should someone lodge a Workers Compensation claim against you. This can happen if your worker is injured or falls sick whilst under your direction at work. For example they may fall off a ladder and break a leg and now require rehabilitation, surgery, and can’t work for a while. In this example you would be liable to pay for the medical bills, rehab, and for their loss of income. Plus of course any legal costs. Workers Compensation Insurance
would step-in in this case and pay for the bills.
Workers Comp Insurance means your business is protected from a huge financial hit if something goes wrong. And it also leaves your employees with the peace of mind you will be able to pay out. If you do not get this insurance you can be faced with severe fines and penalties.
Tradies Public Liability Insurance
In most cases Public Liability will be mandatory for tradies working on site. That means that as per direction from the site manager or building company, you will be required to present a copy of a Certificate of Currency to prove you have Public Liability Insurance.
Public Liability Insurance protects you in case in the course of your work you injure someone or damage a third parties property. It doesn’t apply to yourself, employees, or your own property – just to third party incidents. Therefore if you dropped a hammer and it hit your clients windshield, this would technically be covered by your insurance. In more serious cases you may cause serious injury to third parties and be liable to pay out millions. Therefore this is why this insurance is usually mandatory for tradies going onto worksites and comes highly recommended as part of your tradie insurance packages.
If you are unsure about which types of mandatory insurance apply to your trade, you can chat to one of our friendly brokers today at All Trades Cover. All information given above is of a general nature and should you need further assistance you should speak to a broker. Call us or fill out our quick online form here and you’ll get a call shortly.