Aussie Tradies were leaders when it came to the uptake of important forms of insurance cover and optimistic about their 2021 performance as they rely on cash and core skills to drive their business this year, according to a newly released snapshot of the Australian small business landscape.
The BizCover 2022 Small Business Bravery Report found that despite challenging conditions, more than 50 per cent of small trade businesses rated their performance as good or very good while less than 20 per cent had a negative business performance for the year.
Commissioned by BizCover, the Bravery Report surveyed 1,327 small businesses across 20 industries in January to better understand the sentiment and drivers of Australian small businesses. “Small business owners have courageously weathered the storm over recent years and now have cautious optimism and confidence in a brighter future,” said Sharon Kenny, BizCover’s Head of Marketing.
“Tradies have been among most resilient industry across Australia and should be commended on their ability to rely on their core skills.” Tradies bucked the trend among high-performance industries. Most industries that performed well were able to either develop new products/services or were able to transition their businesses online. Most Tradies were unable to do that and continued with business as
“Tradies had to rely on their core skills to deal with pandemic-induced restrictions and lockdowns as it was harder for them to pivot their service online,” said Sharon. “Despite this, the industry stuck it out and planned accordingly, which ended up working for many Tradie businesses.”
Tradies also realised the importance of Public Liability insurance, being the industry most likely to take out this essential form of cover. Any small business with physical interactions with a third party should consider getting Public Liability cover. Yet 33 per cent of respondents across all industries said they did not have Public Liability cover and only 11 per cent were concerned about the risk.
“Many Tradies are required to have Public Liability insurance for contracts or to enter jobsites. Those that don’t have it are risking claims being made against them,” says Sharon. “It’s good to see many Tradies realise this risk and protect themselves and their business.”
A recent BizCover customer also experienced the importance of having Public Liability cover. A Tradie had been contracted to paint the cladding on their client’s premise. Unfortunately, the paint had not set and when it rained, the paint had washed off the walls, which lead to paint on the concrete and into the storm water system.
This all needed to be cleaned up, and the third party sought compensation of $4,584.90 for the costs. Fortunately, the painter’s insurer paid $4,009.90 of the total bill under the terms and conditions of their Public Liability policy**. It’s easy to protect your business from a number of financial risks like this.
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*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 in this article is general only and should not be relied upon as advice. © 2022 BizCover Pty Limited, all rights reserved. ABN 68 127 707 975; AFSL 501769
**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 be determined by the insurer and depend on the specific circumstances around the loss. Cover for a claim would be subject to the terms and conditions of the policy concerned.