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How to Find the Best Tradie Insurance Policy for You 

10 October 2017

Every day, tradesmen face a variety of risks at work. According to research from PwC, workplace accidents spiked in 2015 and have risen since. With workplace risk being such a huge factor affecting thousands of Australian tradies, it’s important to minimise the risk of financial hardship now.

However, finding the right insurer and policy to fit your situation is difficult. It’s vital to ensure you take out adequate insurance or you may regret your decision in the event of a serious accident. On the other hand, many tradesmen purchase more coverage than they will likely need. This means you may be facing steep premiums for accidents that likely won’t happen.

It’s important that you consider the following. And don't forget, always speak with an expert if you need additional help as they can offer great insights and information.

Be Prepared for Any Unexpected Catastrophe

There are two types of insurance you should consider, general and life.

Here is an overview of each:

1. General Insurance

General insurance usually covers theft, damage to your tools, fire, and flooding. It can also cover liabilities for property damage and injuries.

2. Life Insurance

Life insurance is usually seen as a more advanced cover as it covers funeral and living costs. You can also purchase Total & Permanent Disability cover. TPD covers lost income for accidents that leave you unable to work due to serious illness or injury.

Being a tradesman is often a dangerous vocation.  Unfortunately, younger tradesmen rarely purchase TPD coverage which can often be a serious mistake. Victoria Worksafe found 10 tradesmen are injured every day which should be an indication of how important TDP really is.

Your insurance should be crafted to your situation and needs. Tradesman often work in different environments and as such will likely need cover for different accidents. Work closely with a financial advisor with a background in your industry as they can suggest the best coverage for your situation.

Purchase the Right Coverage

Insurers usually consider many factors when setting their premiums. These factors are likely to include:

  • Your trade
  • Your state
  • Weekly benefit or death benefit for TPD or general life insurance
  • Your age
  • Prior history of accidents

You can't control most of these factors. However, you can reduce premiums by choosing plans with lower benefits that you are unlikely to need in your profession.

Look at the following quotes:

  • A 37-year old electrician in NSW wants personal accident coverage. He wants a $70,000 death benefit and $2,400 weekly TPD benefit. His monthly premium is $162.13.
  • Another electrician seeks coverage. He doesn't want a death benefit. He just wants $1,200 weekly TPD benefit. His coverage will cost $81.23 a month.

Is the quoted premium too high? Consider seeking lower benefits. Your analysis should include:

  • Your spouse's income
  • Mortgage and other debts
  • Needs of your dependents
  • Age and life expectancy
  • Other options for employment after a permanent injury

Collaborate with a Tradie Insurance Company

Working independently with an insurer can become complicated and confusing. You lack bargaining power and will have difficulty choosing the right premiums. You may also be exploited by unscrupulous insurers that have escaped the scrutiny of the Australian Securities and Investments Commission.

Working with a tradie insurance company has many benefits:

  • They only work with reputable insurers.
  • They tailor their recommendations to your needs.
  • They can help you find the best rates on any insurance products.

Check Reviews

Research your insurer or broker first. Some insurers don't match customers to the right policies and others offer poor customer service. Checking online reviews is one of the best ways to vet these companies. You can also check the Insurance Council of Australia website for complaints.

Every tradesman risks experiencing an accident every day. Some catastrophes can put them out of work for a few weeks and can cost you your livelihood.

Purchasing the right insurance policy at the right price is essential. Do a risk analysis first. Don't be afraid to seek professional assistance.

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Founder of Toward Music, Jayde is a music enthusiast and scripturient with a consuming passion to write. She also writes in the home improvement and design industries, with 13+ years experience in writing and journalism.

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