Running a tradie business in Australia is not just about rocking up on site. It takes a great deal of planning and anticipation of what the future may hold to remain in business for the long hall.
From long hours and early mornings to endless chains of emails, you might feel so far removed from what it is that you’re trying to achieve.
And sometimes you need to just knuckle down and get through the boring admin stuff.
But through it all, you’ve built a business that you should be proud of – making your sacrifice of time, sweat, and money worth it at the end of the day.
SEE ALSO: Sorting out your tax audit insurance with BizCover
This is why you wouldn’t want to risk the future of your business over something that can be easily protected against.
From supply chain issues to chronic labour shortages and the Covid-19 pandemic, Aussie tradies have had a tough run with so much disruption in recent years.
With so much change, there is a fair chance the risk your business faces has also changed, and it may be time to give your tradie business an insurance health check.
Here are four factors to review to ensure that your insurance adequately covers your business for material risks or any claims that may arise and a Top Tradie Tip at the end for good measure.
- Your workforce has changed
A tradie’s work life is barely ever stagnant, which often influences the size of their workforce. After the recent disruptions, many tradie businesses may have a drastically different team than when they last renewed their insurance.
If your workforce has shrunk since the you last reviewed your policy, you could adjust your insurance to better suit its current size. Conversely, if your business has grown and your workforce has increased, you may need to consider updating your cover.
Whatever the case, it’s important to ensure your insurance covers your current workforce.
- The risk to customers and suppliers is different
If you interact with your clients in a physical environment, there are many risks you may come up against.
Understaffing and untrained workers could lead to situations where safety protocols aren’t properly followed, resulting in a higher chance of an accident.
For instance, if a customer or supplier trips at your workplace and suffers an injury because your apprentice got sloppy with some leftover equipment, a claim could be made against you.
While you could always provide extra training, you may also need to ensure you have adequate Public Liability cover*, which is designed to provide protection from third-party injury or property damage.
- The risk to your business itself has changed
Your customers are important, but so is your stock, equipment, and commercial premises. From fires to theft, the risk to your assets could have changed since you reviewed your policy.
Business Insurance* is a package designed to provide cover for these assets from risks such as fire, storm, theft, or accidental damage. It can even cover your portable equipment, glass and for loss of revenue due to a business interruption in specified circumstances.
If you’ve made any internal changes to your business premises or something has increased the risk externally, you might need to consider updating your Business Insurance policy.
- You give advice as part of your tradie business
If you’ve got your own tradie business, it’s probably safe to say you’re an expert at your job. Your clients may depend on your knowledge, so giving out your tradie pearls of wisdom has become a part of your day-to-day routine.
But did you know that if you are an electrician, plumber or carpenter and your advice causes a client financial loss you could be held responsible? That’s where Professional Indemnity insurance* could come in handy.
More than 10,000 plumbers, electricians, and carpenters get their business insurance through BizCover* in Australia, largely getting Public Liability insurance or Portable Equipment cover.
Yet only a fraction of these tradies understand the importance of Professional Indemnity insurance. A claim could arise from you providing the wrong service, miscalculating a measurement, or give an incorrect treatment and your client could suffer financially as a result.
While it may not be mandatory, the results of a claim against you because of your advice could be disastrous for your business.
So, if you’re getting paid for your professional advice or opinion then it’s important to futureproof your business by considering whether you are covering yourself.
Top Tradie Tip: How to prove you own your tools
As a tradie, your tools are essential to getting the job done and losing them would be a disaster.
Thankfully, Portable Equipment insurance* is there to cover you for loss and damage to your tools and stock due to theft, fire and other perils listed in your policy wording.
But did you know that your insurer will request proof of ownership before they accept your claim?
Even if you’re a stickler for your tool itinerary, equipment accumulates over time, and it’s hard to keep every receipt along the way.
Luckily, our Portable Equipment insurers generally accept other forms of evidence, such as:
- valuations
- owners or operating manuals
- and photographs.
So next time you buy a piece of equipment, remember to take a photo of the invoice and the of piece of equipment.
Keep in mind you will need to send them over before you make a claim. These photos should be stored and used as evidence of ownership of your portable equipment.
Take notes of what happened
If need to make a claim on your Portable Equipment policy, contact your insurance provider as quickly as possible after the incident. That way, the information is still fresh in your mind. If that’s not possible, write down as much information as you can. Key details like time, date, location, and a general description of what happened to what tools can help the insurance company assess the claim.
From there, your claim will be processed and you could get back the tools you need to get the job done in no time.
Where can tradies sort out their business insurance?
Running a tradie business can be stressful at the best of times, let alone when you have a claim made against you because of your advice. Fortunately, you can get protected for Professional Indemnity insurance today through BizCover.