Trade Insurance – A Valuable Investment for all Tradespersons

3rd June 2010

A Trade Insurance is a policy which has a

wide cover to protect you from any liability claims in your trade. As a

tradesperson you may need to travel to different sites and this policy will cover

you from theft of your tools or equipment as well as from personal accidents or

illnesses.

This insurance policy helps tradespersons

to carry out their trade and skill without any undue worry of unfortunate

incidents. Given below are a few of the wide range of trades that fall into

this category of insurance:

  • Brick Layer                 
  • Residential Builders                  
  • Carpenter                    
  • Cleaner
  • Decorator                    
  • Electrician                                
  • Gardener                     
  • Lawn Mower
  • Painter                                     
  • Plumber           

A common Trade Insurance will always cover

a number of options. It covers the typical risks that a tradesperson may face

everyday and the policy also allows you to choose cover options you may wish to

have. Some of these cover options include:

Personal

injury and property damage: This option will

cover you if someone sues you for personal injury or damage to their property

in relation with your business. For example, you could be sued if someone trips

over a hammer you left lying around; or if you accidentally caused same damage

to your customer’s property – dent in a wall or pipe.

Business

vehicle insurance: provides the same cover as

your personal vehicle but it is registered as a vehicle for business use. This

cover is vital for tradespersons who travel since they are at a higher risk for

accidents.

Burglary:

This option covers for burglary at your

business premises for equipment, stock or contents.

Personal

accident and illness: This covers for loss of

income as a result of a defined accident or illness.

Property

in transit: This option covers the theft of

property that you take about with you, such as all the different types of tools

and equipment.

Mentioned above are just a few of the many

covers that can be included in a Trade Insurance policy. You can discuss all

these options which are relevant to your trade with your insurance agent before

finalising on a policy.

As a tradesperson you will never know when

an unforeseen or unexpected situation may arise when working. Given below are a

few examples that will help you understand the value of investing in such a

policy:

1)     

Electrical Services:

  • Theft of electrical equipment
  • A worker getting electrocuted
  • A sudden illness of the

    Electrician – the policy owner

2)     

Hairdresser:

  • Accidentally a worker causes

    some injury on a client at the salon

  • Any damage caused to the salon

    building

  • Fire at the salon

3)     

Motor Trades:

  • An error made by a worker

    during a repair job – fixing faulty work

  • The vehicle used for the

    business meets with an accident

  • Burglary and damage caused to

    the workshop

These are just a few examples of the

different covers that are available for the different types of trades. All

tradespersons can customise a Trade Insurance plan to suit the particular trade

you work on.

Some online websites appropriately term

this policy as “Blue collar insurances for Blue Collar business.”