Tradesmen have special requirements when it comes to their insurance.
For starters, and unlike almost any other industry, it is mandatory for most tradies to have income protection insurance just to get onto the worksite.
Some tradesmen will opt to take the cheapest policy available just to get onto the worksite, but the smart ones realise that without a decent income protection policy they are leaving themselves open to some pretty serious financial risks.
If you're going to pay for a cheap and nasty policy anyway, why not pay a bit extra and get a policy that is really going to look after you at claim time?
Tradesman income protection is really no different to any other standard income protection, but there are certainly some insurance companies whose income protection policies are better suited to tradespeople.
Having the right policy for your needs can be the difference between a successful claim and not being able to claim at all. And what's the point of paying for a policy that may not deliver when you need it most?
When choosing a tradesman income protection policy there are a few factors that you should pay particular attention to.
First of all, you need to make sure that the insurer is going to offer a decent benefit period for your particular trade. For standard trades this isn't generally a problem, but if you work in a dangerous or unskilled trade, you may find that some insurers will limit the benefit period to two or five years.
Ideally you want an income protection policy with a benefit period that runs all the way through until you reach age 65. If your policy runs for only two or five years, and you suffer an injury or illness that leaves you unable to work ever again, you could find yourself in major financial trouble.
All self-employed tradesmen and subcontractors know that if they're not working, they're not earning. To protect yourself financially in the event that you are unable to work due to injury or illness it is vital to have a decent income protection policy in place.
Other types of insurance you may wish to include are life insurance, TPD and trauma insurance. We will detail these covers in more detail elsewhere, but they can certainly be beneficial for all tradies.
For more information on tradesman insurance we recommend you try Trade Risk and Tradesman Insurance.