Builders throughout Australia require a range of insurance policies to protect themselves, their businesses and their families.
As a builder there are plenty of risks that you face every day. Many of these you can manage yourself, but others need to be protected against through insurance.
Some of the most common forms of insurance for builders include public liability and tool insurance, along with income protection and life insurance.
In this guide we will take a look at some of the more popular insurance types for builders and associated tradesmen.
Public Liability Insurance
Of all the insurance types for builders, public liability is one of the most commonly required covers.
Building sites can be dangerous places, and the risk of personal injury or property damage is high. If you are found to be responsible for such an incident you could be up for big dollars in compensation.
Having the right builders public liability insurance policy in place you can help to ensure that the costs of such a claim can be covered by the insurance company rather than coming out of your own profits.
As a builder you rely on your ability to work in order to earn a living. If like most builders you work for yourself, you generally won’t have access to sick leave or worker’s compensation, which can leave your exposed if you are unable to work for a period of time.
Income protection insurance can replace up to 75% of a builder’s personal exertion income for a period of time if they cannot work due to injury or illness.
Even if you aren’t self-employed, income protection is still important for a builder in order to protect yourself and your family against medium and long term absences from work.
Builders Tool Insurance
All tradesmen and builders have impressive tool collections, but there is always the risk that someone will try to steal your tools or that they could be damaged by fire or storm.
A builders tool insurance policy can replace all of your tools against a range of risks including theft, fire, storm and vehicle collision damage.
As with most types of insurance, not all tool insurance policies are alike. It’s important to shop around and check the policy wording for exactly what is and isn’t covered.
Life, TPD and Trauma Insurance
Most builders know all about life insurance, but there are two other parts to the life insurance story which should also be considered by builders.
Life insurance is quite standard. It will pay a lump sum to your family in the event of your death which can be used to extinguish your debts and provide a financial buffer to ensure that your family doesn’t have to endure financial hardship.
TPD insurance is another important form of insurance for builders. TPD stands for total and permanent disability, and the policy will pay you a lump sum if you suffer an injury or illness that leaves you unable to work ever again.
Trauma insurance is a newer and less popular form of insurance for builders, but it is still very important and well worth considering. It will pay a lump sum if you are diagnosed with a critical illness or condition such as cancer, heart attack or stroke.
Life, TPD and trauma insurance are more about protecting yourself and your family rather than your business, but in many respects that makes them even more important for builders, especially those with loved ones to look after.
Other Forms of Cover for Builders
There are many other forms of insurance which builders will have to consider. Some may be mandatory depending on the type of work you do, whilst others are simply a good idea for protecting yourself and your business.
Some of these other forms of cover include business expense insurance, business interruption insurance and builders warranty insurance.
Builders Insurance Quotes
The easiest way to get a builders insurance quote is to contact an insurance broker who specialises in such cover.
Here at Builders Insurance we have access to an Australia-wide network of insurance brokers and advisers who know the industry and can help you with quotes and advice on your insurance needs.
If you would like to speak with an expert about insurance for builders please contact us or complete our online quote request.
Insurance is an important consideration for builders, and it pays to have the right protection in place for the sake of yourself, your business, your staff and of course your family.