As a contractor operating in the current environment, it is more important now than ever to have the right insurances in place that are specific to your individual needs. The experienced Insurance Brokers at Atlantic Insurance are experts at identifying your risks and exposures to develop a tailored Insurance Program that minimises and eliminates risk.
Learn more about why it is essential for contractors to operate with the right Trade Insurance, as well as the 5 policies that all contractors should carry.
Why Insurance Is Important For Contractors
Insurance is an essential component of any contractor’s risk management strategy, providing a high level of cover against unforeseen events and ensuring business continuity. If something happens that leaves you unable to work, it can have catastrophic consequences that leave you without an income. The right policies will ensure that, should anything happen, you can receive compensation that means you are still financially protected in these circumstances.
Especially in a particularly litigious society, appropriate insurance cover will mean you are protected against claims of third party liability. It may also be important as a contractual requirement or for compliance as explained by business.gov.au, or to allow you to repair and replace equipment, machinery, tools and valuable items without which you couldn’t continue working.
Carrying appropriate coverage also demonstrates to clients that you are a responsible, professional business owner, and builds trust within your professional relationships that you will deliver quality services.
The 5 Essential Policies
1. Public Liability Insurance
Liability Insurance is the most important policy a contractor should carry. This offers financial protection in the event that your business or work is claimed to be liable for third party property damage or personal injury.
Many contracts will have a requirement for you to hold this type of insurance, with a minimum amount of cover. Without this insurance you are exposed to a large financial risk, and may suffer great loss if your negligence leads to accidental damage or injury.
2. Personal Accident & Illness Insurance
As someone who relies on your physical health to carry out your work, this form of insurance will offer protection in the event that injury or illness affects your ability to work. This will ensure you can still receive a financial benefit up to specified amount covering your loss of wages for a period of up to two years in most cases.
3. Insurance for Tools
While this policy is not likely to be a contractual requirement, Tools Insurance is necessary to ensure you are able to cover the cost to repair or replace your valuable tools of trade as soon as possible should they become damaged, lost or stolen.
If you need to put your work on hold while you are sourcing or acquiring new tools, this will not only have a direct financial loss due to the repair or repurchase costs, but will also potentially impact your ability to deliver your services. Having tools Insurance in place ensures you can minimise the financial impact of a loss and get back to work as soon as possible.
4. Business Insurance
This policy can be structured to cover Stock and Business Contents and is highly recommended. This offers security against financial loss due to malicious damage, impact, theft, accidental damage, storm and a range of other exposures to your business property. It can also be extended to provide compensation for business interruption in instances where your gross profit is impacted as a result of an insured peril.
5. Commercial Motor Vehicle Insurance
To ensure your commercial vehicle is covered against damage or theft and to reduce delays in business operation in these circumstances, this policy is essential. General Car Insurance may not cover your vehicles for third-party or own damage when used for business activities, so it is important to check your coverage and protect your commercial vehicles.
This type of cover also includes accessories, meaning protection for equipment and apparatus on or within the vehicle that becomes damaged.
25 Years Of Protecting Contractors
At Atlantic Insurance, with 25 years of working with contractors we have experienced every sort of claim imaginable. The reality is, these events seem to be increasing both in frequency and severity and operating any business without the correct insurances in place could have disastrous impacts.
Contact us to speak with a knowledgeable Client Manager about our Insurance for Tradies and shelter your valuable contracting business with the appropriate coverage.
Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.