Contractors and tradesmen
As a contractor or tradesman it is very easy to become exposed to risk. Generally, your work is completed in another person’s home or business making it essential to have the right insurance. Get your choices right and your business is protected and risk exposure is minimised. Get your choices wrong and you might as well say goodbye to your business and quite possibly your ticket to practise your chosen trade.
Contractors and tradesmen include:
- bricklayers
- builders
- carpenters
- carpet layers
- cleaners
- concreters
- electricians
- gardeners
- painters
- plumbers and
- tilers.
Some types of insurance are compulsory, including workers’ compensation insurance (if you employ staff) and third party insurance for your vehicles, but this still leaves a seemingly never-ending array of other insurances to choose from.
How do I know what I need?
Following is a summary of types of insurance recommended for contactors and tradesmen.
Most important insurance covers
- Public liability insurance - covers legal liability as a result of injury to the general public occurring as a result of your business practices.
- Products liability insurance - covers liability for the sale or supply of products and services.
Other recommended insurance covers
- General property - covers costs associated with repairing or replacing specified items e.g. mobile telephone..
- Personal accident/sickness - cover following accidental injury or illness.
As an optional extra, you can also include insurance cover for other risks, including fire and defined events, business interruption, burglary, fidelity guarantee, professional indemnity and life insurance for your business partner(s). If you occupy a premises, other insurance is also available to cover loss of money or costs associated with repairing broken glass. However, your insurance company or insurance broker should be able to advise you regarding the possible need of other insurances.
Where can I get small business insurance?
There are dozens of insurance companies, all vying for your business. A search on the web or through the yellow pages may leave you confused and dismayed by the choices available to you.
Telephoning or visiting each one individually is probably not an option so how do you choose?
Family, friends or other business owners may be able to advise you according to their experiences and preferences. Alternatively, you may decide to stick with an insurance company you are familiar with yourself. Your other option is to discuss your needs with an insurance broker. Insurance brokers act as agents for a number of insurance companies and they can find the best business insurance to suit you and your needs.
Finally, for information on small business insurance, tax, legal requirements, licenses, permits and other considerations, check out either the Australian Government’s small business website at business.gov.au or the New South Wales Government’s website at smallbiz.nsw.gov.au.