Getting your business insurance sorted is one of those things that no matter if you’re a plumber, plasterer or handyman, needs to be ticked off that to-do list. While at times it may seem a bit overwhelming, knowing which policies cover what and the type of coverage you need, we’ve done the leg work to come up with a simple guide that explains how business insurance can protect your tradie business.
Here are some of the typical reasons and types of business insurance coverages you may need as a tradie and why they are important to consider for your business.
It may be a requirement
For many tradies, coverages like Public Liability insurance are often required before you even pick up your tools and start working on site, especially for contractors. It’s important that you know what kind of cover is needed and also the limit of your cover.
It may also be a requirement if you join an industry body or professional membership for your trade. For details on the type of cover and limits it is best to check directly with the industry board.
Safeguarding your finances and reputation
Not having business insurance in place may leave your business’ finances and reputation in a volatile situation if a claim were to occur. The impact of a claim could have a devastating impact on your business, one which could potentially have you hanging up the tools for good without the right protections in place.
If a claim were to occur, these are some of the things to consider:
- The time involved with defending, processing your claim- this is time away from your business, working on jobs and earning an income
- If compensation is awarded, where will you get the funds from to pay it? This is where your business savings and even personal assets can be placed at a risk of being lost to cover the costs
- The legal costs involved with defending your claim
- Your businesses reputation. The impact of a claim without having the right insurances in place could damage your relationship with clients and peers within your industry.
These are the dramas and stresses that your business can do without. This is where the different types of business insurances available can provide peace of mind and protection, safeguarding your business for the long haul.
Now let’s get into the nitty gritty and take a look at some of the types of business insurance tradies need to typically consider for protecting their business.
In a nutshell, Public Liability insurance is designed to provide protection for you and your business in the event a customer, supplier or a member of the public are injured (and not covered by the Accident Compensation Commission (ACC) ) or sustain property damage as a result of your negligent business activities.
It is one of the main types of insurances that you may need to consider as a tradie. This is an overview of what is typically covered and not covered under your policy:
What is covered?
- Compensation for accidental damage to third party property
- Compensation for personal injury or death to third parties where the ACC does not provide cover
- Legal and defence costs
What is typically NOT covered?
- Injury to your employees
- Damage to your own property
- Compensation for personal injury whereby cover is provided by the ACC
- Known claims and circumstances
You rely on your tools to help you get the job done, and being stuck without them is a spanner in the works you don’t need. If you take the time to take a look at your tool box, you might be surprised at how quickly the cost to replace them all adds up.
Is this something that you could afford to fork out in one go if they were lost or stolen and needed replacing? This could also impact the jobs you are currently working on, delaying the process and affecting your reputation too.
That’s where Portable Equipment cover can provide a bit of reprieve.
Portable Equipment 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.
When it comes to cyber-crime, hackers don’t discriminate with the kind of businesses they target. Having sensitive information stored online like customer details and financial data, instantly poses the threat of an attack. Cyber Liability insurance is designed to provide a form of protection.
Cyber Liability provides cover for losses from claims arising from data breaches, business interruption and remediation costs following an actual or threatened data breach.
You’re a guru when it comes to trade, so it’s only natural that your clients are going to ask for your pearls of wisdom when it comes to certain projects and help with issues they might by having with their property for example.
While you might think you’re helping out by giving advice, the trouble is, it can also land you in hot water if your advice doesn’t exactly go to plan.
Professional Indemnity (PI) insurance is designed to respond to claims against your business for
losses as a result of actual or alleged negligent acts or omissions in the provision of your professional
service or advice. Professional Indemnity insurance will also assist with the legal costs associated with responding to or
managing claims which are covered by the policy.
Get your tradie business insurance quote today
As you can see, there are many opportunities for things to go pear shaped when you run your own tradie business. The role of business insurance is to help protect your business from unwanted challenges and give you peace of mind so you have one less thing to worry about.
At BizCover, we understand how hectic life can get as a small business owner, and that’s why we make getting your insurance sorted simple with no dramas. Jump onto our online platform, enter some details about your business then receive multiple quotes to compare from selected leading New Zealand insurers.
Get covered in minutes, with your policy documents sent straight to your inbox, no paperwork required. Experience insurance made easy today with BizCover.
* 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.