Insurance is a complicated subject owing to numerous options and a wide spectrum of needs of different sections of the market. For businesses, regardless of their types, buying insurance is of the utmost importance. However, this task is not easy, especially with tradies. Tradies are versatile performers who are involved in various types of jobs. Often their work is project-based and is highly diverse in nature. Several questions and apprehensions are there, regarding insurance plans and covers for tradies. People often ask questions like do tradies need business insurance, what kind of plan would be suitable, how much and for what, the cover should be expected, and what things should be considered while choosing a plan, etc. Here are a few things that are not often spoken of but hold importance in your decision making for insurance plan purchase.
- How much an accident at the workplace can cost
The most important aspect of planning a backup for risk is to know the possible level, impact, and likelihood of the risks. Knowing the potential cost of an accident at the workplace can help you determine how much protection or to cover you would need. It is important to understand that a similar incident can cost differently in different situations. For instance, a disabling injury demands to pay monthly amounts to the injured for several years. The cost of such an instance would be more for younger employees.
- Your liabilities when your business goes into liquidation
When a company goes into liquidation, the director or the company owner is liable for several payouts. These include the losses of the creditors, health and safety compensations, etc. An owner’s liability insurance plan can protect you from these claims that are often based on mismanagement.
- Cyber attack risks
Every business needs to have an online presence and the trade contractors are also bound to adhere to this rule. However, taking your business online exposes you to numerous unusual risks. Cyber-attacks or hacking can cost you a huge amount in terms of money, reputation, business interruptions, etc. Consider these risks as serious threats and get insurance for your company for those risks.
- Vehicle insurance may cover only commercial vehicles
One common misconception tradies have related to vehicle insurance is that every vehicle used for work purposes is insured. However, if your employee is using his/her personal vehicle for work-related travel/transport, any accidental damage in such a case is not covered but the vehicle insurance.
- Understand risk-based pricing for natural threats
Instead of providing a standard protection cover insurance companies are moving towards risks-based protection. This means, for any property or asset, the associated risks calculated and the premium amount is fixed accordingly. The risk-based pricing has made premiums for protection against natural calamities more expensive.
- Know the common issues related to insurance
Before you choose an insurance provider and pick a plan, know and discuss common issues related to insurance to eliminate future hassle. These common issues include settlement options given by the insurer, delays in settlements, excesses, need for the proof of loss and ownership, gradual damage, calculation of the market value of the asset, etc.
