The basics of business insurance for all trades of life- a lingo free guide

The world of trades is exciting and filled with many skills, abilities and fields of knowledge. From plumbers to landscapers, sparkies and chippies to painters and joiners just to name a few, there are so many specialities and occupations to mention.  

Along with the role of being a tradie, comes risks, something which varies from tradie to tradie. That’s why there’s no one size fits all when it comes to business insurance and the different types of cover available.  

Our guide is here to help make heads and tails of business insurance without the boring bits, helping you to understand the basics and give you the confidence you need when selecting business insurance to protect your tradie business.  

What are some of the main types of business insurance for tradies? 

It may feel overwhelming when looking at the different types of tradie insurances available and thinking about what kind of cover is going to be appropriate for you business. Having a basic understanding of some of the types of insurances can help lessen the worry, and we’re here to arm you with knowledge to help make decisions when selecting your cover. 

Public Liability insurance* 

One of the original and common types of insurance for tradies, you might already be familiar with how it works. In a nutshell, Public Liability insurance covers you if a third-party claim that your negligent business activities caused them injury or property damage or personal injury (not covered by the ACC). This includes defence costs cover. 

Public Liability insurance is often required before you can even pick up tools on work sites, so it’s wise to ensure you have your cover in place.  

Professional Indemnity insurance* 

If part of your role as a tradie is providing professional advice, then Professional Indemnity insurance is something you may need to consider. It covers you for losses claimed by a third party due to alleged or actual negligence in your professional services or advice. This includes defence costs cover. 

Even providing advice on the fly to customers could potentially land you in hot water, if they action your advice and the result doesn’t go to plan they could make a claim against your tradie business.  

Tool and Portable Equipment cover* 

Your tools of trade, something that no tradie can stand the thought of being without. Regardless of the type of trade you work in, your tools are not only vital, but they add up quickly too.  

Tool and Portable Equipment cover is there to provide protection for loss and damage to your tools and equipment due to theft, fire and other perils listed in the wording, anywhere in New Zealand. 

So, if you do move around a bit from site to site and you’re out and about seeing clients, you can rest assured knowing your cover has got your back. 

Business Insurance* 

Business Insurance is an insurance package designed to provide cover for your business contents, stock, tools and commercial premises when an insured event occurs (such as fire, storm, theft or even accidental damage). A Business Insurance policy can also cover your portable equipment, and loss of revenue due to business interruption in specified circumstances. 

Business insurance packs can be tailored to suit the unique needs of your tradie business, covering you for the things that matter.  

Cyber Liability insurance* 

While you may spend a lot of time getting your hands dirty and out on the job, take a second to think about the parts of your business that you carry out online. Things like keeping customer details, payments and banking information and details about your own trade business are sensitive, and may be at risk of cybercrimes when kept online. 

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. 

What kinds of things may cause a claim for a tradie business? 

Even for the most careful of tradies, accidents and unforeseeable dramas can still crop up when you least expect them. These are a few examples of types of claims you may be faced with as a tradie and the types of business insurances which may provide protection against a claim: 

  • You accidentally damage property belonging to your client while carrying your business activities- Public Liability insurance  
  • Your tools of trade are stolen- Tool and Portable Equipment cover  
  • A third-party accidentally trips over your tools and injures themselves (when not covered by the ACC)- Public Liability insurance  

How much does insurance for tradies cost? 

There are a mix of factors that go into determining the cost of business insurance policies. Each business insurance policy takes these unique factors into consideration to calculate the total cost of your premium. Some of these factors include: 

  • The size of your business, how many employees do you have 
  • The turnover of your business 
  • The limit of cover that you purchase 
  • The type of business activities that your business performs 
  • Your claims history 
  • The excess you select 

How do I get my tradie business insurance sorted? 

Getting peace of mind by having your business insurance in place is something you make happen in the click of a button. BizCover is about making the process of business insurance easy, stress-free and quick. We provide an online platform to assist when it comes to shopping around and selecting your business insurance cover. 

We don’t like to waste time, so if you need a certificate of currency in a hurry, get in touch and arrange cover that can be sent to your inbox in minutes.  

If you prefer to have a chat to one of our business insurance specialist, they are waiting for your call and happy to answer any queries you may have about your cover. 

Experience cover like no other with BizCover today. Visit us online for a quote today, or if you prefer to have a chat you can reach us at 0800 249 268. 

 *This information is general only and does not take into account your objectives, financial situation or needs. It should not be relied upon as advice. As with any insurance, cover will be subject to the terms, conditions and exclusions contained in the policy wording. © 2023 BizCover Limited. 

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