What every New Zealand tradie needs to know about insurance 

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What every New Zealand tradie needs to know about insurance 

For those that work for themselves as a tradie, you would already have an idea of just how important it is to have the right business insurances in place for when things don’t go exactly to plan. Sometimes it can be easy to just buy the easiest option without doing too much research,  

We did some digging around to create a list of ten useful things to keep in mind when getting insurance and reasons why you need to protect your tradie business. These are simple tips to ensure you’re getting adequate cover to protect you  against any nasty surprises like an unexpected claim. 

 

Protect your tools 

Can you imagine the havoc if you were to wake up and find that your tools were stolen? How would you be able to get your jobs done without the things that you rely on most? That’s where Portable Equipment*cover can give you some much needed peace of mind. You might be surprised at how quickly all those tools in your toolbox add up, and having to replace them in one go could really put a dent in your savings.  

This can also impact the time it takes for you to complete the jobs at hand, causing delays which could also damage your business’ reputation- a drama you can live without. That’s where Portable Equipment cover can provide a bit of much welcomed protection when you may need it most. 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. 

 

Cyber attacks can be a serious problem 

 If your tradie business is heavily reliant on your online presence or collects personal information on your client, be aware a cyber-attack can happen at any time. With cybercriminals becoming increasingly sophisticated with their attacks, it sometimes can be hard to spot a scam before it becomes a problem. 

That’s why it worth considering protecting the digital side of your business with Cyber Liability insurance*. 

 Your coverage may generally include cover for expenses and restoration costs relating to the 

following: 

  • Data breaches including theft or loss of client information

Network Security Breaches 

  • Business interruption costs
  • Forensic investigation into the cause or scope of a breach
  • Data recovery costs
  • Cyber Extortion
  • Crisis management costs (to protect or mitigate damage to your businesses reputation resulting from a cyber event) 
  • Loss and Legal costs, including fines and penalties resulting from a third party claim for data or network security breach against your company  

Note: The coverage may vary depending on the insurance provider  

 

Understand your level of cover 

Understanding what you are covered for from the start means you won’t be caught out or surprised if a claim were to occur. To avoid the feeling of stress and frustration at the time of a claim make sure you take the time to understand all the nitty-gritty of your policy. 

These include things like being aware of what your excess is and how it works at the time of a claim, have you got enough cover in place, and what proof of ownership may be required for your contents/portable equipment if they were stolen?  These issues and misunderstandings can be avoided if you spend the time going through your policy making sure that you are happy with the coverage that you are taking out. 

It may be a requirement  

For many tradies, coverages like Public Liability insurance* are often required before you step foot on site. This will often be outlined in your contract, it is important that you know the minimum amount of cover that is required. It’s also a wise move to make sure you have this all sorted before you start working on the job. 

 Public Liability insurance may also be a requisite to become a member of certain professional industry bodies for your trade. If you are unsure of what level of cover may be required, it is worth getting in contact directly with your industry board.  

 

Your reputation and finances need a safeguard 

Not only are there the potential legal and industry body requirements to have the right business insurance in place, but there’s also things like your finances (both personal and business related) and your reputation to consider protecting. 

If a claim were to occur the financial impact could be the difference between staying in business or hanging up the tools for good. These are a few things to keep in mind if your business was faced with the reality of a claim: 

  • Think about the time that is spent away from your business on sorting out the claim, especially if it goes to court. Legal proceedings often can take months sometimes up to years to finalise. This is valuable time that could be spent working on running and growing your tradie business. 
  • If compensation is awarded, without business insurance willyou be able to afford it? Where would your funds come from to cover any damages that may be awarded against you? If there isn’t enough financial support from the business your personal assets may be at risk..  
  • How will you be able to afford the legal costs to defend your claim? 
  • The reputation of your business- this is something that you have worked long and hard at. A claim can put a significant strain on your business and could damage the relationships you have with your clients and peers within your industry 

Hopefully all of the above will be helpful to you as you search for an insurance policy that will give you the peace of mind you need when you are dealing with the complexities of running your own business. If you would like more information about insurance for tradies, visit https://www.bizcover.co.nz/insurance-for-tradesmen/ 

 

* The information provided on this page is general guide only and does not take into account your personal objectives, financial situation or needs. This information should not be construed as any form of advice. Consider your own personal circumstances, objectives, financial situation, needs, Product Disclosure Statement (PDS), and full policy terms and conditions before making a decision. Product descriptions on this page are intended only as a guide to coverage terms and conditions, and should not be relied upon to determine policy coverage. Policy coverage is subject to the specific terms and conditions of each policy wording.  

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.  

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