Working as a tradie, you already have a rough idea about the importance of business insurance and how vital it is to have the right kinds of cover in place. While it would be nice to have a crystal ball and be able to predict when things may not go to plan, the reality is accidents and incidents can happen at any time and any place, and usually when you least expect it.
So, if you’ve been looking for some tradie tips about business insurance and protecting your tradie business, you’ve come to the right article. Whether you’re an electrician, a plumber or a landscaper, this jargon-free guide is here to help explain all you need to know about tradesmen insurance.
Don’t leave your tools unprotected
If you were to wake up one morning and find that all your tools have been stolen, can you think of the chaos this would cause? You’re now left high and dry, unable to finish any outstanding jobs you may have been working on and start any new projects for clients you may have had in the pipeline.
Fortunately, there’s insurance cover for that with Portable Equipment cover*. It covers you for loss and damage to your tools and equipment due to theft, fire and other perils listed in the wording, anywhere in New Zealand.
If you take the time to add up how much the contents of your toolbox are actually worth you might be surprised. If you had to replace these all in one go, your finances might take a bit of a battering, something no tradie really wants to be faced with.
The threat of cyber attacks
If your tradie business operations involve collecting, storing and managing your clients personal information, then you need to consider having extra measures in place to protect your online data. Or if you rely on your website to generate customers for your business you will want to protect your lead flow. Cyber-attacks can happen when you least expect it, and what may seem like a harmless email or text could have a devastating impact on your business.
This is where Cyber Liability insurance* can provide a safeguard to protect your tradie business’ online sphere.
Cyber Liability insurance covers you for losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.
Understand what you’re covered for
We get it, business insurance is often one of those things that you get, set and forget. There’s a lot to manage and think about when you’re running your own tradie business, but not understanding your business insurance coverage and having the right cover in place could cause a headache at claim time.
You don’t need to feel overwhelmed by your insurance policy and to make it simple, we’ve highlighted some of the key things you need to be aware with your policy including:
- Know what your excess is- your excess is the amount that will be deducted from any potential claim payout. The amount you have as your excess can affect your premium, so make sure you have an amount that you can afford if you needed to make a claim
- Do you have enough cover in place? Check that you have enough coverage to protect things like new tools if you purchase them, and also the limits you may have for things like Public Liability insurance, especially if you your business has grown with more staff for example.
- Make sure you are covered for the right kind of business activities. Your business may have expanded and offers new types of services then when you initially took out your policy. Make sure that these are covered under your business insurance policy
Business insurance may be a requirement
It’s not uncommon for most types of tradie businesses to require some form of Public Liability insurance in place, well before starting work on site. If you are working with contracts this is often outlined, as well as the amount you are required to have. It’s best not to leave this to the last minute, and have your policy sorted before you start the project.
Public Liability insurance is also typically required to become a professional member of certain trade industry bodies. Once again if you are not sure on the level of cover you are required to have, it is always wise to check directly with your industry board.
Protect your back pocket and reputation
You’ve worked hard and put in a lot of effort and finances to get your tradie business to where it is today. You have spent years building your business to get the respected reputation it has with your clients and peers, and all it takes is a for a claim to send it all crashing down.
A claim can cause a massive impact on your finances too and could be the difference between being in the tradie game for the long haul or hanging up your tools for good!
These are some real life effects that a claim may have on your tradie business that you need to consider:
- Time- the time that you will need to spend away from your business sorting your claim is precious time that is spent away from running and looking after and growing your tradie business. If you claim goes to court, the proceedings could days, weeks or even months depending on the nature of the claim.
- Compensation costs- if compensation costs are awarded and you don’t have business insurance in place, how would you be able to afford the payout? Where would you be able to find the financial support to cover the damages? If you don’t have enough financial backing within your business, then your personal assets may be at risk to cover the costs.
- Legal costs- it’s no secret that the associated legal costs for defending a claim are not cheap. Without business insurance, will you have enough financial support to cover these expenses?
We hope that our quick guide on understanding tradie insurance has given you some peace of mind, and a better idea of some of the key things you need to know about business insurance. If you would like to learn more or get a quote for your tradie insurance, get in contact with BizCover today.
We believe in drama-free insurance without the mountains of paperwork, just insurance made easy.
* This information is a general guide only and does not take into account your objectives, financial situation or needs. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this web page is general only and should not be relied upon as advice.
The provision of the claims examples are for illustrative purposes only and should not be seen as an indication as to how any potential claim will be assessed or accepted. Cover for a claim will depend on the specific circumstances around the loss and would be subject to the terms and conditions of the policy concerned.business insurancetradesmantradies