The very physical nature of the work and the chances of things going wrong along the way make the case for trades insurance.

Examples of trades cover include liability, tools and general property, portable electronic equipment, motor vehicle, personal accident and injury, and workers compensation.

There are also a couple of specific things to think about when it comes to trades insurance:

1. The risk of underinsurance:
Not only is insurance itself crucial for trades, but so too is the need for adequate levels of financial protection. A tradie operating without a big profit margin and looking to cut costs may be tempted to skimp on insurance, but this could prove to be not much better than having no cover at all.

2. ‘Handyman’ cover:
Sometimes a person who is not a licensed builder might work as a semi-skilled handyperson, doing odd jobs or repair work. People in these situations may neglect to get insurance, or even think it’s not necessary.
But you only need to consider the things that could go wrong (such as damage to property, theft of tools, mistakes or personal injuries) to realise how essential it is. So even if you are not a full-time tradie, don’t neglect to financially protect your small business through appropriate insurance cover.

Whatever your trade, discussing your work and risk level with a professional broker helps to ensure you get the level of financial protection you require. It also reduces the risk of being over-insured, as you can make sure to get a suite of policies that are a good fit for your specific business and level of risk.